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Risk sharing for the long-run. The benefits from financial integration

Author

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  • Croce

    (Mariano M. University of North Carolina at Chapel Hill.)

  • Colacito

    (Riccardo. University of North Carolina at Chapel Hill.)

Abstract

of the resolution of uncertainty combined with endowments containing a slowly moving trend can result in extremely high welfare gains. The model is also able to account for a large set of international finance stylized facts. Our setup allows us to bridge part of the gap between the current finance and international macroeconomic literatures.

Suggested Citation

  • Croce & Colacito, 2008. "Risk sharing for the long-run. The benefits from financial integration," 2008 Meeting Papers 985, Society for Economic Dynamics.
    • Handle: RePEc:red:sed008:985
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    References listed on IDEAS

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