We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs … resulting from an increased risk exposure. We find that when the shock distribution displays "fat" tails, extreme segmentation …

Jesús Fernández-Villaverde, Pablo A. Guerrón-Quintana, Juan F. Rubio-Ramírez and Martín Uribe (2011) find that risk … rate risk shock increases by 63 percent and the contribution of interest rate risk shocks to business cycle volatility more … than doubles. Hence, risk matters more in the recalibrated model. However, the recalibrated model does worse in capturing …

of optimal risk-sharing in mortgage contracts. But since only a small literature has studied this question, more research … termination via prepayment or default affects optimal risk-sharing. The broad conclusion of the analysis is that potential … mortgage termination makes higher risk exposure for borrowers optimal. …

the period 1972:1-2014:12 to forecasts our tail risk indicators with each model in pseudo-real time. Our key finding is …

degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

) If the relative measure of risk aversion is less (more) than 1 then more information raises (reduces) income inequality …. (b) When a risk sharing market is available better information results in higher inequality regardsless of the measure … risk aversion. …

the near future. The research finds no evidence of large differences in the patterns of risk sharing for the 19 OECD …

We argue that since there are several impediments to international risk sharing, the welfare gains from full … international risk sharing, which have been the object of analysis in the previous literature, are not suggestive. Instead, we study … the gains from feasible risk sharing and find that they are considerable (0:5% increase inpermanent consumption). Marginal …

This paper considers family formation and reciprocity-based cooperation in the form of sharing of earnings-risk. While … risk sharing is one benefit to marriage it is also limited by divorce risk. With search in the marriage market there may be …

Exchange of risks is considered here as a transferable-utility cooperative game. When the concerned agents are risk … averse, there is a core imputation given by means of shadow prices on state-dependent claims. Like in finance, a risk can … on the pooled risk and the convolution of individual preferences. Explored below are relations to finance with some …