become less elastic over time, resulting in a decline in risk sharing. While shock amplification has also declined on average …We develop a structural model of the global banking network and analyze its role in facilitating risk sharing and … explains variation in risk sharing and amplification across countries. Moreover, we show that cross‐border loan supply has …

This paper criticises the standard methodology used to measure the importance of different channels of risk sharing in …

Asset price data imply a large degree of international risk sharing, while aggregate consumption data do not. We …. Active households pay a fixed cost to transfer income into or out of assets. These households share risk within and across … countries, and their marginal utility growth prices assets, so asset prices imply high international risk sharing. Inactive …

We investigate empirically how industrialized countries and U.S. states share consumption risk at horizons between one … and thirty years. U.S. federal states share about 50 percent of their permanent idiosyncratic risk through cross … share any of their permanent idiosyncratic risk. Our results suggest that purely transaction cost based theories cannot …

the near future. The research finds no evidence of large differences in the patterns of risk sharing for the 19 OECD …

and economic conditions. We document that integration improves shock absorption: output, consumption, and investment are … significantly higher after a shock in states of high integration than in states of low integration. However, the benefits of … international risk sharing mostly come to advanced economies. Emerging markets only profit from more integration if they have good …