accounts for the interaction between temperature, economic growth and risk. The model simultaneously matches the projected … temperature path, the observed consumption growth dynamics, discount rates provided by the risk-free rate and equity market …

International risk-sharing has far-reaching implications both for economic policy and for basic research in economics …. When countries do not share risk, individuals in those countries experience fluctuations in their consumption levels that … are undesirable and possibly unnecessary. This paper extends and refines the study of international risk-sharing in two …

uncertainty is time-varying, and (2) countries have heterogeneous exposures to a world aggregate shock. We embed these features in …

idiosyncratic entrepreneurial risk-- a risk that introduces, not only a precautionary motive for saving, but also a wedge between …

the U.S. would experience a sudden stop of capital flows, which would unavoidably drag the world economy into a deep … instead that the root imbalance was of a different kind: The entire world had an insatiable demand for safe debt instruments … of exposing the economy to a systemic panic. This structural problem can be alleviated if governments around the world …

: (1) financial crisis is unlikely to happen in the near future, and (2) the ultimate risk lies with China's economic …

and international trade in goods and securities.In our model, the world allocation of capital is governed, to some extent …, by the asset preferences of risk averse consumer-investors. In a one-good variant in the spirit of the MacDougall model … world of certaint and may hinge on the identity of the factor which is used intensively in the industry with random …

stocks and risk-free bonds over its lifecycle. We show that allowing for the wage indexation of social security benefits …

and to examine two potential explanations of the asymmetry: leverage effects and time-varying risk premiums. Our empirical …