conditions on existence/ nonexistence of balanced growth paths. Major results include that growth, inequality, and risk are … positively related in our model, but we also identify a hump–shaped relationship between welfare and risk, indicating a tradeoff … relationship between risk–pooling and growth in the determination of welfare. We discuss transitory dynamics and policy …

idiosyncratic entrepreneurial risk-- a risk that introduces, not only a precautionary motive for saving, but also a wedge between …

capital markets financing. However, these theories are inaccurate and can adversely affect risk management and portfolio …

trade any financial derivative written on a risky asset instead of a constant amount of it. The risk premium in the … 'constant amount' model is decomposed into two: the 'market incompleteness premium' and the risk premium in this new model …. Consequently, the possible new insurance design with a general premium and overvalued excess return/risk aversion in the miss …

agents in the model are not very risk averse, the model predicts a sizable equity premium and a low riskfree rate. By …