This paper explores whether there was an economically significant differential in market-based risk between bank … participated in investment banking exhibited significantly lower total and unsystematic risk, suggesting that banks’ participation … systematic risk. …

The author examines the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in … the economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk …-sharing between households occurs through long-term contracts with intermediaries. The author finds that incomplete risk-sharing tends …

share risk is constrained by the market. This can be beneficial because intermediaries invest less in the productive … technology when they provide more risk-sharing. Our model predicts that bank-oriented economies should grow slower than more …

efficient risk-sharing, negatively correlated with relative consumptions across countries. This paper shows that a model with … international transmission of productivity shocks generate the observed degree of risk-sharing: one associated with an improvement … transmission pattern. These findings are at odds with the presumption that terms-of-trade movements foster international risk-pooling. …