This paper examine differences between risk-neutral and objective probability densities of future interest rates. The … identification and quantification of these differences are important when risk-neutral densities (RNDs), such as option-implied RNDs … apllied to German time-series and cross-section term structure data in order to identify both the risk-neutral and the …

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 …

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 …