Consumption risk sharing among U.S. federal states increases in booms and decreases in recessions. We find that small … aggregate risk sharing are more pronounced in states in which small firms account for a large share income or employment. In … to have loosened the dependence of aggregate risk sharing on the business cycle. Not only do our result support that …

when it comes to high-yield bonds over the past 20 years. We use rich new data to compare high-yield US corporate (“junk … surprisingly aligned, with (i) similar average excess returns, (ii) similar average risk-return patterns (Sharpe ratios), (iii … for sovereigns. Moreover, the two markets co-move differently with domestic and global factors. US “junk” bond yields are …

the economy. Due to liquidity and endogenous default, the transmission mechanism of shocks is well defined, and their …This paper introduces agent heterogeneity, liquidity, and endogenous default to a DSGE framework. Our model allows for …

the risk-free rate. This allows us to discuss several policy measures. Capital requirements and a correctly implemented …

political dynamics in normal recessions or after severe macroeconomic shocks that are not financial in nature. …

In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the …

Hommes. This behavioural approach allows to better understand and replicate the effects of shocks. In the absence of actual …