This paper investigates the degree of risk sharing across households in China with heterogeneous risk and time preferences from the late 1990s to early 2010s. Standard tests assume homogeneous preferences across households, which may bias the true risk sharing degree if, in reality, preferences...

Most of the existing theories of international cooperation implicitly adopted the assumption that defection or cheating are easily detectable, either because the behavior of other actors is directly observable, or the payoffs received by the relevant actors are perfect indicators of past...