This paper studies Pareto-optimal risk-sharing arrangements in a private information economy with aggregate uncertainty … result can be extended to dynamic settings in the sense that, in this case, only savings need to be distorted, but not trades …

equilibrium risk sharing, the precautionary savings motive in the aggregate can vastly exceed that of even the most prudent actual … reasonable risk aversions for all agents. One downside of a large aggregate savings motive is that savings rates become extremely …Movements in asset prices are a major risk confronting individuals. This paper establishes new asset pricing results …

superior. The intuition is simple: if underlying technologies are not convex, then risk-sharing can lower expected utility. The … likelihood of a bankruptcy cascade, "contagion," and systemic risk …

International consumption risk sharing studies have largely ignored their models' counterfactual implications for asset … returns although these returns incorporate direct market measures of risk. In this paper, we modify a canonical risk … variance of equity returns and the risk-free rate requires persistent consumption risk, leading to three main findings: (1 …

This paper uses a quasi natural experiment to explore how financial education changes savings, investment, and consumer …

accentuated by fundamental pension reforms that aim at more pre-funding. Population aging changes households' savings behavior and … at the effects of population aging on savings behavior and capital markets therefore adds a new dimension to the …

, normal economic development is suspended. Moreover, difficult to reverse capital flight puts savings outside the home economy …