consumption across countries from the predictions of models with full risk sharing. It is commonly believed that these risk … that the full risk sharing equilibrium may not require much diversification of equity portfolios when there is price …

This study investigates the apparent lack of insurance against country-specific risk observed internationally. Using a …-movements of prices and quantities suggesting that risk sharing is worse in emerging economies than in advanced economies. I then … international risk sharing. I show that shocks to trend productivity growth provide a compelling explanation for the distinct risk …

Conventional wisdom suggests that financial liberalization can help countries insure against idiosyncratic risk. There … is little evidence, however, that countries have increased risk sharing despite recent widespread financial …, financial contracts are incomplete and enforceability of debt repayment is limited. Default risk of debt contracts constrains …

better risk sharing outcomes during the recent period of globalization. Developing countries have, by and large, been shut …In theory, one of the main benefits of financial globalization is that it should allow for more efficient international … risk sharing. In this paper, we provide a comprehensive empirical evaluation of the patterns of risk sharing among …