Corpus ID: 30538417

Learning in Rare Risks and Asset Price Implications

@inproceedings{Teh2014LearningIR,
  title={Learning in Rare Risks and Asset Price Implications},
  author={Tse-Ling Teh},
  year={2014}
}
The impact of rare risks such as natural disasters, terrorism and epidemics are an increasing force in society. Unlike the case of common risks, our inexperience in rare risks creates di ering views on the level of risk and the optimal form of risk management. Nonetheless, in both cases, the transfer of the nancial risk can play a role in risk management. This paper illustrates how risk class impacts the price of risk transfer. In each risk class, two kinds of risk transfer assets are… Expand

Figures from this paper

References

SHOWING 1-10 OF 17 REFERENCES
Asset Pricing Under Rational Learning About Rare Disasters
  • 15
  • Highly Influential
  • PDF
Variable Rare Disasters: An Exactly Solved Framework for Ten Puzzles in Macro-Finance
  • 781
  • PDF
Dynamic Asset Allocation with Event Risk
  • 193
  • PDF
Rare Disasters and Asset Markets in the Twentieth Century
  • 1,643
  • PDF
Risk, Uncertainty, and Divergence of Opinion
  • 2,937
  • PDF
The Aggregation of Investor's Diverse Judgments and Preferences in Purely Competitive Security Markets
  • 458
Neglecting Disaster: Why Don't People Insure Against Large Losses?
  • 270
  • PDF
Divergence of Opinion in Complete Markets: A Note
  • 298
Decisions from Experience and the Effect of Rare Events in Risky Choice
  • 1,238
  • PDF
Speculative Investor Behavior and Learning
  • 385
  • PDF
...
1
2
...