When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are … an integral part of financial markets' organization. We assess the degree of risk sharing that can be achieved through … for optimal risk sharing as long as markets are complete, default is prevented in equilibrium and intermediaries provide …

When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are … an integral part of financial markets' organization. We assess the degree of risk sharing that can be achieved through … for optimal risk sharing as long as markets are complete, default is prevented in equilibrium and intermediaries provide …

When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are … an integral part of financial markets' organization. We assess the degree of risk sharing that can be achieved through … for optimal risk sharing as long as markets are complete, default is prevented in equilibrium and intermediaries provide …

When people share risk in financial markets, intermediaries provide costly enforcement for most trades and, hence, are … an integral part of financial markets’ organization. We assess the degree of risk sharing that can be achieved through … for optimal risk sharing as long as markets are complete, default is prevented in equilibrium and intermediaries provide …

global games approach in a general equilibrium setting, this paper shows that rollover risk as a disciplining device is … effective only if all banks face purely idiosyncratic risk. However, if banks' assets are correlated, a two-sided inefficiency …