Cavaliere, Giuseppe; Fanelli, Luca; Gardini, Attilio - In: Journal of Applied Econometrics 23 (2008) 1, pp. 1-16
In this paper we examine the implications of international risk sharing among a set of countries in the presence of market frictions which complicate the instantaneous adjustment to the first-order conditions. We suggest approximating the consumption streams of countries belonging to the risk...
