scale economies using two production models. The standard risk-neutral model finds little evidence of scale economies. The … model using more general risk preferences and endogenous risk-taking finds large scale economies. The authors show that …

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. …

We develop a model of banking industry dynamics to study the quantitative impact of capital requirements on bank risk …

their perceived risk. We develop a dynamic stochastic general equilibrium model with the aim of verifying how sensible this …