Globalization and Risk Sharing
Article, Research, Preprint
The Review of Economic Studies,
international markets | sovereign risk | domestic markets; globalization; international markets; risk sharing; sovereign risk | globalization, risk sharing, sovereign risk, domestic markets, international markets | Macroeconomics and International Economics | globalization | domestic markets | risk sharing
We study the effects of globalization on risk sharing and welfare. Like the previous literature, we assume that governments cannot commit to enforce the repayment of debts owed by their citizens. Unlike the previous literature, we assume that governments cannot discrimi...