factor risk model, when augmented with reference returns, is capable of generating visually consistent return distributions …

This paper shows that individual beliefs on the effectiveness of formal and informal sources of risk sharing determine … access to private risk sharing networks. Moreover, we find that both types of trust associate positively with the probability … to take on financial risk for the purpose of becoming a homeowner and the related loan-to-value ratio. Our findings are …

alter the perception of market risk and hit financial intermediation — ‘financial factors’ in short — are prime determinants … intermediation turns an otherwise diversifiable source of idiosyncratic economic uncertainty, the ‘risk shock’, into a systemic force …

factor risk model, when augmented with reference returns, is capable of generating visually consistent return distributions …

Using regionally disaggregated data on economic activity, we show that risk sharing plays a key role in shaping the … real effects of monetary policy. With weak risk sharing, monetary policy shocks trigger a strong and durable response in … output. With strong risk sharing, the response is attenuated, and output reverts to its initial level over the medium term …