aggregate uncertainty. Gains from more efficient capital allocation and gains from risk sharing are accounted for simultaneously … quantitatively small, even for riskier and capital scarce emerging economies. These countries import capital for efficiency reasons … before exporting it for self-insurance, leading to capital ows and growth reversals along the transition. This opens the door …

aggregate uncertainty. Our framework accounts simultaneously for gains from a more efficient capital allocation and gains from … integration has an effect on the steady-state itself, altering convergence gains from capital accumulation. Because we use global … in terms of risk, capital scarcity and size, we find important differences in the effect of financial integration on …