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 …

effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset … the international transmission of productivity improvements generate the observed degree of risk-sharing: one associated … transmission pattern, questioning the presumption that terms-of-trade movements foster international risk-pooling. …

Spanish borrowers does not seem to be at risk in the short term, in the medium and long run, any widening of the already …