We propose a new methodology to evaluate the gains from global risksharing that is closely connected to the empirical growth literature. We obtain estimates of residual risk (growth uncertainty) at various horizons from regressions of country-specific deviations from world growth on a wide set...

La repatriacion de capitales privados constituye una fuente importante de financiamiento en aquellas economias latinoamericanas que actualmente estan implementando programas de estabilizacion. En el presente articulo el autor senala la importancia de algunos mecanismos para coordinar las...

Though part of “market lore,” Black (1976) first reported the inverse relationship between price and volatility, calling it the “leverage effect.” Without providing evidence, Black (1988) claims that in the months leading up to the October ‘87 Crash the relationship changed: price and...

Fines and damages are the principal sanctions of criminal, civil and regulatory law. Yet in law it does not matter who pays money sanctions. Damages overwhelmingly are paid by insurers and the cost of insurance premiums loaded into commodity prices and thus dispersed among consumers. Fines are...

This study is set up to investigate if foreign development assistance and its uncertainty have a joint impact on economic growth risk. Based on the analysis of the average data across 157 countries and territories, the results indicate that, on average, increased foreign development assistance...

We construct a model of FDI, risk and aid, where a country loses access to FDI and aid if the country expropriates FDI. We show that: (i) The threat of expropri- ation leads to under-investment; (ii) The optimal level of FDI decreases as the risk of expropriation rises; and (iii) Under certain...