This paper assesses financial integration in Asia in terms of risk-sharing benefit versus financial-contagion cost. We construct a new measure of risk sharing based on a term structure model, which allows identification of realized stochastic discount factors. Risk sharing is low in Asia, and...

This paper proposes a framework to analyze long-term potential growth that combines a simple quantitative model with an investigative approach of ‘growth diagnostics’. The framework is used to forecast potential growth for Cambodia, and to conduct simulations about the main drivers of growth...