Theorems. Subsequently, we explore the gap between the normal distribution and financial risk. This can be traced to a failure …

superior. The intuition is simple: if underlying technologies are not convex, then risk-sharing can lower expected utility. The … likelihood of a bankruptcy cascade, "contagion," and systemic risk …

investor base after stock splits. The results are supportive to the risk sharing hypothesis proposed by Peress (2010) who …

reliance of European investors on banks and build up a market-based risk-sharing channel between member states. Our empirical … provide evidence that (i) financial flows are generally pro-cyclical; (ii) market-based risk-sharing mechanisms tend to break … systemic financial crisis. During the Great Recession, failing market risk-sharing was replaced by the ECB through the cross …