"This paper presents a dynamic model of a public pension fund's choice of portfolio risk. Optimal portfolio allocations … public pension fund management, we find evidence that funds chose greater overall asset - liability portfolio risk following …, pension plans take more risk when they have greater representation by plan participants on their Boards of Trustees …

"We develop a model of informal risk-sharing in social networks, where relationships between individuals can be used as … social collateral to enforce insurance payments. We characterize incentive compatible risk-sharing arrangements and obtain …-dimensional networks, where people have connections in multiple directions, are sufficiently expansive to allow very good risk-sharing. We …

size in the market. The model offers a partial explanation for the surprisingly low market price of financial risk in the …