Conventional wisdom suggests that financial liberalization can help countries insure against idiosyncratic risk. There … is little evidence, however, that countries have increased risk sharing despite recent widespread financial …, financial contracts are incomplete and enforceability of debt repayment is limited. Default risk of debt contracts constrains …

In order to answer the question whether more integrated financial markets are characterized by less International Risk … for financial integration, and the International Risk Sharing in consumption. Using panel-data regressions for 21 OECD … international income flows, is associated with more International Risk Sharing. Much of the increase in international asset …

consumption across countries from the predictions of models with full risk sharing. It is commonly believed that these risk … that the full risk sharing equilibrium may not require much diversification of equity portfolios when there is price …