international equity transactions that accentuate the role of international risk sharing as a factor for the macroeconomic response … shock affecting only one country. Efficient global risk-sharing imply that expected productivity gains in one country will … for the productivity gains can further increase the risk exposure of foreign shareholders. The model is calibrated to show …

decision problem of using self-governance for risk sharing or governance through enforcement provided by these institutions … prevent first-best risk sharing, but never optimal to provide incentives exclusively via this technology. Commitment problems …

When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are … an integral part of financial marketsu0092 organization. We assess the degree of risk sharing that can be achieved … allow for optimal risk sharing as long as markets are complete, default is prevented in equilibrium and intermediaries …

This paper analyses the relationship between openness to trade and wages at the industry level (15 manufacturing … importance of foreign wages versus domestic productivity developments in an open environment. We find that trade is not an … important driver of wages, since the wage response to trade is small. Moreover, in line with the Stolper-Samuelson reasoning …

wage premium. The results also show that import penetration from low–income countries has a significant and negative impact … on the inter-industry wage differentials, while imports from high-income countries seem to have a more ambiguous impact … on the wage structure. The results suggest that trade with low-income and high-income countries has different effects on …