hypothesis does not imply a price for risk as big as the one measured in the data. There are three reasons for this. First … pricing risk in the economy changes so that relatively better self-insured households end up pricing risk. …

This paper shows how two standard models of consumption risk-sharing - self-insurance through borrowing and saving and … risk-aversion under self-insurance, but are a robust feature of limited commitment. Its "shape of insurance" thus argues …

emerging markets if they face higher risk than the US itself. But, with pronounced Loss Aversion in Emerging Markets, their …

regions and clubs, finding that most gains from risk sharing can be achieved within US regions. Since a considerable fraction … gains may be obtained from further improvement of risk sharing institutions. …

This paper quantifies the macroeconomic implications of the lack of insurance against idiosyncratic labour market risk …

exchange economy with multiple agents who differ in their degree of risk aversion and face borrowing constraints. We … volatility of stock returns increases with the cross-sectional dispersion of risk aversion, with the cross-sectional dispersion … constraint lowers the risk-free interest rate and raises the equity premium in equilibrium. …