We first study growth and risk sharing in a stochastic growth model with preference shocks and two risk-averse agents. In periods in which one of the agents needs extra consumption (insurance), it is socially optimal to reduce the consumption of the other agent (redistribution) and also to...

This article studies the U.S. establishment-size distribution from 1974–2006. The main findings are: (i) the size of the “representative” establishment is relatively constant; (ii) the size distribution has become slightly more evenly distributed; (iii) the relative stability of aggregate...

We first study growth and risk sharing in a stochastic growth model with preference shocks and two risk-averse agents. In periods in which one of the agents needs extra consumption (insurance), it is socially optimal to reduce the consumption of the other agent (redistribution) and also to...