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 …

variables that allow for individual heterogeneity in both constants and autoregressive parameters, and control for heterogeneity …

-adjusted income levels, various socioeconomic characteristics, housing traits, country-specific constant terms, and household … unobserved heterogeneity. We show that households evaluate their own debt burden partly in comparison with the debt position of …

faster for sectors that have a higher "natural" long-term risk-adjusted growth and which exhibit higher information frictions …

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 …

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 …