Financial intermediaries may increase economic efficiency through intertemporal risk smoothing. However without an … adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed … economy and compares abilities of market-based and bank-based financial systems in processing the shock. Unregulated banking …

or long-term unemployment, may occur during working years. Personal disaster risk alters lifetime ex-ante investment … characterizes rare disasters, results in lower risk-taking at the beginning of working life, and is crucial in order to match the …

microsimulation results into the shock for a dynamic overlapping generations model. Our results show that this policy change affects …