perturbation theory to derive an approximate tractable expression for this cost adjusted for climatic and economic risk. We allow … sensitivity and the damage ratio, and correlated shocks. We identify prudence, insurance, and exposure effects, reproduce earlier …

Despite its importance implied in asset pricing and macroeconomic models, insurance against long-run volatility risk … show that households have directly purchased large quantities of insurance against long- run volatility risk through the … insurance companies. Total net assets with such insurance grew from zero when the guarantees were first introduced in the early …