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 …

Foreign direct investment (FDI) inflows into Central and Eastern Europe declined from a record $31 billion in 2002 to a …-term prospects for further FDI growth in Central and Eastern Europe are good. In all, FDI inflows last year rose in 10 of the regionu …0092s countries and fell in nine, with most countries receiving less than $1 billion. Inward FDI flows as a percentage of …

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 …