LEADER 04994oam 22012374 450 001 9910788336103321 005 20230721045713.0 010 $a1-4623-3256-0 010 $a1-4527-5511-6 010 $a9786612843525 010 $a1-282-84352-4 010 $a1-4518-7285-2 035 $a(CKB)3170000000055255 035 $a(EBL)1608271 035 $a(SSID)ssj0001478137 035 $a(PQKBManifestationID)11803863 035 $a(PQKBTitleCode)TC0001478137 035 $a(PQKBWorkID)11461521 035 $a(PQKB)10764259 035 $a(OCoLC)586082024 035 $a(MiAaPQ)EBC1608271 035 $a(IMF)WPIEE2009138 035 $a(EXLCZ)993170000000055255 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aInternational Risk Sharing : $eThrough Equity Diversification or Exchange Rate Hedging? /$fAkito Matsumoto, Charles Engel 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a1 online resource (47 p.) 225 1 $aIMF Working Papers 300 $aDescription based upon print version of record. 311 $a1-4519-1714-7 320 $aIncludes bibliographical references. 327 $aContents; I. Introduction; II. A General Result in a Static Framework; III. A Dynamic Sticky-Price Model with Local-Currency Pricing; A. Household Problem; B. Firms; C. Equilibrium Portfolios under LCP and Flexible Wages; D. Equilibrium Portfolios under LCP and Sticky Wages; E. A Dynamic Sticky-Price Model with Producer-Currency Pricing; IV. Conclusion; Tables; 1. Optimal Portfolios under LCP, Flexible Wages; 2. Optimal Portfolios under LCP, Sticky Wages; 3. Optimal Portfolios under PCP, Flexible Wages; 4. Optimal Portfolios under PCP, Sticky Wages; References 330 3 $aWell-known empirical puzzles in international macroeconomics concern the large divergence of equilibrium outcomes for consumption across countries from the predictions of models with full risk sharing. It is commonly believed that these risk-sharing puzzles are related to another empirical puzzle-the home-bias in equity puzzle. However, we show in a series of dynamic models that the full risk sharing equilibrium may not require much diversification of equity portfolios when there is price stickiness of the degree typically calibrated in macroeconomic models. This conclusion holds under a range of assumptions about home bias in preferences, price setting as PCP or LCP, and with or without nominal wage stickiness as long as there is some price rigidity. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/138 606 $aRisk 606 $aHedging (Finance) 606 $aForeign Exchange$2imf 606 $aInvestments: Stocks$2imf 606 $aMacroeconomics$2imf 606 $aMoney and Monetary Policy$2imf 606 $aInternational Finance: General$2imf 606 $aOpen Economy Macroeconomics$2imf 606 $aPension Funds$2imf 606 $aNon-bank Financial Institutions$2imf 606 $aFinancial Instruments$2imf 606 $aInstitutional Investors$2imf 606 $aPrice Level$2imf 606 $aInflation$2imf 606 $aDeflation$2imf 606 $aMonetary Systems$2imf 606 $aStandards$2imf 606 $aRegimes$2imf 606 $aGovernment and the Monetary System$2imf 606 $aPayment Systems$2imf 606 $aInvestment & securities$2imf 606 $aCurrency$2imf 606 $aForeign exchange$2imf 606 $aMonetary economics$2imf 606 $aStocks$2imf 606 $aSticky prices$2imf 606 $aCurrencies$2imf 606 $aExchange rates$2imf 606 $aPrices$2imf 606 $aMoney$2imf 615 0$aRisk. 615 0$aHedging (Finance) 615 7$aForeign Exchange 615 7$aInvestments: Stocks 615 7$aMacroeconomics 615 7$aMoney and Monetary Policy 615 7$aInternational Finance: General 615 7$aOpen Economy Macroeconomics 615 7$aPension Funds 615 7$aNon-bank Financial Institutions 615 7$aFinancial Instruments 615 7$aInstitutional Investors 615 7$aPrice Level 615 7$aInflation 615 7$aDeflation 615 7$aMonetary Systems 615 7$aStandards 615 7$aRegimes 615 7$aGovernment and the Monetary System 615 7$aPayment Systems 615 7$aInvestment & securities 615 7$aCurrency 615 7$aForeign exchange 615 7$aMonetary economics 615 7$aStocks 615 7$aSticky prices 615 7$aCurrencies 615 7$aExchange rates 615 7$aPrices 615 7$aMoney 700 $aMatsumoto$b Akito$01472697 701 $aEngel$b Charles$0125885 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788336103321 996 $aInternational Risk Sharing$93685566 997 $aUNINA