This paper explores whether there was an economically significant differential in market-based risk between bank … participated in investment banking exhibited significantly lower total and unsystematic risk, suggesting that banks’ participation … systematic risk. …

The author examines the impact of incomplete risk-sharing on growth and welfare. The source of market incompleteness in … the economy is private information: a household's idiosyncratic productivity shock is not observable by others. Risk …-sharing between households occurs through long-term contracts with intermediaries. The author finds that incomplete risk-sharing tends …

share risk is constrained by the market. This can be beneficial because intermediaries invest less in the productive … technology when they provide more risk-sharing. Our model predicts that bank-oriented economies should grow slower than more …

efficient risk-sharing, negatively correlated with relative consumptions across countries. This paper shows that a model with … international transmission of productivity shocks generate the observed degree of risk-sharing: one associated with an improvement … transmission pattern. These findings are at odds with the presumption that terms-of-trade movements foster international risk-pooling. …

financial capital so that it can logically serve as a cushion against insolvency for potentially risk-averse managers and as a … signal of risk for less informed outsiders. This allows scale economies to be computed without assuming that the bank chooses … authors find evidence that bank managers are risk averse and use the level of financial capital to signal the level of risk …

The Great Recession focused attention on large financial institutions and systemic risk. We investigate whether large … economies or too-big-to-fail subsidies. Estimating scale economies is made more complex by risk-taking. Better diversification … resulting from larger scale generates scale economies but also incentives to take more risk. When this additional risk …