Matsumoto, Akito; Engel, Charles - International Monetary Fund (IMF) - 2009
that the full risk sharing equilibrium may not require much diversification of equity portfolios when there is price … consumption across countries from the predictions of models with full risk sharing. It is commonly believed that these risk-sharing … home bias in preferences, price setting as PCP or LCP, and with or without nominal wage stickiness as long as there is some …