risk sharing may be an important reason why the business-cycle model has trouble accounting for Chinese consumption and …

growth and real exchange rate changes, a key measure of international risk-sharing …

unconditional cross-sectional moments of household consumption growth and the moments of the risk-free rate, equity premium, price …-dividend ratio, and aggregate dividend and consumption growth. The model-implied risk-free rate and price-dividend ratio are … procyclical while the market return has countercyclical mean and variance. Finally, household consumption risk explains the cross …

I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth … risk sharing. Higher uncertainty increases stock prices, risk premiums, volatility, wealth inequality and the dispersion of …

that consumption commitments can cause risk-neutral consumers to care about risk, creating incentives to both insure risks … and bunch uninsured risks together. For example, workers may prefer to avoid wage risk while bearing an unemployment risk …

characteristics of idiosyncratic labor market risk. We find that uncertainty distributed throughout the working years accounts for 40 …

because the former allows risk sharing across countries while the latter does not. The analysis is performed in a two … demonstrated that the ability to share risk across countries in the fixed rate regime does not necessarily lead to higher welfare … than the inability to share risk in the flexible rate regime …

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 …

, borrowing (risk-sharing) declines, and the sensitivity of consumption to income increases. Our model aggregates heterogeneous …

government's role in promoting risk sharing. Benefits for each retired person may be tied to that person's lifetime income …