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 … then persist and the optimal incentive structure changes dynamically over time with third-party enforcement monotonically …

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 …

previous recessions. The study argues that, this time, the rise in the saving rate is likely to be stronger and to extend well …

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

that become more integrated over time have less synchronized growth patterns, conditional on global shocks and country …