In RBC models, “disaster risk shocks” reproduce countercyclical risk premia but generate an increase in consumption along the recession and asset price fall, through their effects on agents' preferences (Gourio, 2012). This paper offers a solution to this puzzle by developing a New Keynesian...

We present a model with agency costs where heterogeneous firms raise finance through either bank loans or corporate bonds, and where banks are more efficient than the market in resolving informational problems. The model is used to analyze some major long-run differences in corporate finance...

One important feature of tax reforms, in particular corporate tax reforms, is the uncertainty surrounding them. Are they going to be permanent or are they likely to be withdrawn by the subsequent government? The expected duration of the reform is important because it affects households' economic...

In this paper, we study the implications of climate change on fiscal sustainability and inequality. First, using rich panel data, we show that rising climate-related disaster risks increase government debt and harm fiscal sustainability. We also find that the adverse effect of disaster risks is...

We study the development of bank lending in the U.S. after four large jumps in uncertainty using an event study approach. We find that more liquid banks reduce lending less than banks with smaller liquidity ratios after a surge in uncertainty. Lending by smaller banks is also less responsive to...

We identify the frontier between safe and unsafe assets and show how the growth rate of the economy and its fiscal capacity interact with differences of opinion amongst investors to determine the safe asset equilibrium. Multiple equilibria emerge in our set-up due to strategic complementarities...

In times of crisis, renewable energy sources have become more attractive for investors. It is considered that investment in renewable energy will provide medium and long term practical solutions for multiple economic crises, will improve the life quality, will eradicate poverty population,...

The author examines the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in the economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk-sharing between households occurs through long-term...

Participants in meetings of the Federal Open Market Committee (FOMC) regularly produce individual projections of real activity and inflation that are published in summary form. These summaries indicate participants' views about the most likely course for the macro-economy but, by themselves, are...

Korean Abstract: 본고에서는 조건부 분위의 개념을 이용하여 가계의 종합적인 부채상환여건이 반영된 과다부채 가계를 정의하고 동 가계의 특징 및 리스크 요인을 분석하였다. 소득, 자산, 기대소득관련 정보, 소비여건관련...