financial development has important consequences for the efficiency and specialization (or diversification) of investments, in a …

that financial development has important consequences for efficiency and specialization (or diversification) of investments …

An important question in international finance is to what extent stock return volatility is influenced by country … return volatility varies markedly across such states. In particular, we find that the country factor contribution drops … markedly when global equity market volatility rises, and that country return correlations become tighter when global and …

growth. At early stages of development, the presence of indivisible projects limits the degree of risk …-spreading (diversification) that the economy can achieve. The desire to avoid highly risky investments slows down capital accumulation and the … equilibrium is inefficient because individuals do not take into account their impact on the diversification opportunities of …

funds dissuades risk averse agents from risky entrepreneural activities. This result opens up the possibility that some …

their required compensation for holding currency risk, thus impacting both the level and volatility of exchange rates. Our … exchange rates and traditional macroeconomic fundamentals, but also has real consequences for output and risk sharing. Exchange …

Any security’s expected return can be decomposed into its “carry” and its expected price appreciation, where carry is a … generalized version of the uncovered interest rate parity and expectations hypothesis in favor of models with varying risk premia …

-depth description of the lifetime pattern of asset holdings and their composition, the degree of asset diversification, and the … evidence on the effect of income risk and information acquisition on portfolio choice. …

We show that international consumption risk sharing is significantly improved by capital flows, especially portfolio … investment. Concomitantly, we show that poor institutions hamper risk sharing, but to an extent that decreases with openness. In … particular, risk sharing is prevalent even among economies with poor institutions, provided they are open to international …