This paper documents a marked increase in international consumption risk sharing throughout the recent globalization … measure long-run risk sharing among OECD countries and US federal states. We derive our empirical setup from a deliberately … to identify the channels through which improvements in international risk sharing have come about. The model predicts …

We explore the impact of mortgage securitization on the international diversification of macroeconomic risk. By making … risk sharing: we find that countries with the most highly developed markets for securitized mortgage debt have consumption … risk sharing in tranquil times but that it actually fails to provide international insurance in severe crisis periods …

Consumption risk sharing among U.S. federal states increases in booms and decreases in recessions. We find that small … aggregate risk sharing are more pronounced in states in which small firms account for a large share income or employment. In … to have loosened the dependence of aggregate risk sharing on the business cycle. Not only do our result support that …