Risk Management Publications "Radical Financial Innovation" Robert Shiller , April, 2005. [28pp] This paper compares past innovation with potential future innovation, looking at the process that produced past success and the possibilities for future financial innovation. Read full article "Social Security and Institutions for Intergenerational, Intragenerational and International Risk Sharing" Robert Shiller, Carnegie-Rochester Series in Public Policy, 50:165-204, June 1999." [see CFDP 1185] Social security system old age insurance systems are devices for the sharing of income risks of elderly people with others. Barriers to individuals themselves sharing their risks are described. Optimal design of government-sponsored social security systems is considered in light of these barriers. Read full article "Macro Markets and Financial Security" Robert Shiller, Stefano Athanasoulis and Eric van Wincoop, Economic Policy Review, Federal Reserve Bank of New York, Vol. 5 No. 1, pp. 21-39, April 1999 We address several questions in this paper. First, how could macro markets be useful to the average person? Second, how large are the potential benefits from diversification if these markets were to be introduced and used optimally? Third, can existing financial markets achieve a similar degree of diversification when used optimally? Fourth, why don't these markets already exist? Read full article "Labor Income Indices Designed for Use in Contracts Promoting Income Risk Management" Robert Shiller and Ryan Schneider, Review of Income and Wealth, Series 44(2):163-182, June 1998. [see CFDP 1110 & CFP 964] In this paper, we group individuals using a transition matrix between jobs, by education level, and by skill category. For each of the groupings, we generate a labor income index, which we argue here might someday be used in settlement formulae in contracts promoting income risk management. "Hedging Inflation and Income Risks." Read full article "World Income Components: Measuring and Exploiting International Risk Sharing Opportunities" Robert Shiller and Stefano Athanasoulis, NBER Working Paper No. 5095, April 1995. [see CFDP 1097] In this paper, we provide a method for decomposing the variance of world national incomes (present values) into national and regional components. Read full article "Hedging Inflation and Income Risks" Robert Shiller, Manchester School (1995), 63: 1-21 (supplement "Papers in Money, Macroeconomics and Finance) Estimates are made, from time series data on real gross domestic products, of the standard deviations of returns in markets on countries' incomes. Such markets, by allowing hedging o these aggregate income risks, might make for dramatically more effective international macroeconomic risk sharing than is possible today. "Aggregate Income Risks and Hedging Mechanisms" Robert Shiller , Quarterly Review of Economics and Finance (1995). [CFDP 1048] Proposals are made that may facilitate the creation of derivative market instruments, such as futures contracts, cash settled based on economic indices. Read full article

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