Firms that are more central invest more in equilibrium. Central firms are exposed to larger idiosyncratic shocks that propagate in the production network. Their incentive to engage in precautionary saving is larger, leading to larger investment. In the data, I find support for this prediction,...

Effective risk allocation is crucial for the success of transport infrastructure public-private partnership (PPP) projects. However, the inherent features of multiple entities, multiple tasks, and dynamicity make it highly challenging to obtain a risk allocation solution. This study aims to...

Housing prices, like the prices of other speculative assets, contain a mix of both small and large changes (i.e., jumps). We apply a jump-GARCH model to monthly Case-Shiller housing price indexes of twenty cities in the U.S. during the period January 1991 through December 2011. We document the...

Using three option market measures, we find evidence from 28 countries/regions that the COVID-19-induced uncertainty is priced in the index exchange-traded funds (ETF) options market. Specifically, options that provide protection to hedge against price risk, variance risk, and tail risk...