' expectations of the economy and the labor market. Neither the UN's Human Development Index (HDI) nor data used in the World … Happiness Report from the Gallup World Poll shifted much in response to negative shocks. The HDI has been rising in the last …

because the former allows risk sharing across countries while the latter does not. The analysis is performed in a two …-country overlapping generations model, where markets are incomplete under either exchange regime. In this second best world, it is … demonstrated that the ability to share risk across countries in the fixed rate regime does not necessarily lead to higher welfare …

superior. The intuition is simple: if underlying technologies are not convex, then risk-sharing can lower expected utility. The … simplistic models arguing for financial integration typically employed in economics assume convexity; but the world is rife with … likelihood of a bankruptcy cascade, "contagion," and systemic risk …

1996 to 2011 period using exchange rate spot, forward, and option data, we obtain a real-time index of world disaster risk … expected exchange rate depreciations (appreciations) for high (low) interest rate currencies, suggesting that disaster risk is … priced in currency markets. To study the price of disaster risk, we propose a simple structural model that includes both …

account for the risk premia and asset price fluctuations. In addition, the model can empirically account for the cross …

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

international macroeconomic risk sharing than is possible today. Retail institutions are described that might develop around such … markets and help the public with their risk management. However, the establishment of such markets would also incur the risk …