to insure counterparty risk by clearing those contracts through a CCP that uses novation and mutualization. As netting is …The authors explain why central counterparties (CCPs) emerged historically. With standardized contracts, it is optimal … not essential for these services, it does not explain why CCPs exist. In over-the-counter markets, as contracts are …

Liquid markets where agents have limited capacity to sign exclusive contracts may permit agents to promise the same … intermediary whose only role is to set limits on the number of contracts that agents can report voluntarily. In some cases, these …

When contracts are unobserved, agents may have the incentive to promise the same asset to multiple counterparties and … prespecified position limit. In some cases, an agent's position limit must be higher than the number of contracts he enters in …

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. …