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Limited participation and International Risk-Sharing

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  • Nicolas Coeurdacier

    (SciencesPo and CEPR)

Abstract

The ”consumption real exchange rate anomaly” is one of the most subborn puzzle in open economy macroeconomics. We make substantial progress by introducing limited participation in an otherwise standard model. In particular, one of our methodological contribution is to show how we can solve for the characteristics and the dynamics of optimal portfolios in such a setup.

Suggested Citation

  • Nicolas Coeurdacier, 2011. "Limited participation and International Risk-Sharing," 2011 Meeting Papers 613, Society for Economic Dynamics.
    • Handle: RePEc:red:sed011:613
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    Cited by:

    1. Marcus Hagedorn, 2017. "An Equilibrium Theory of Determinate Nominal Exchange Rates, Current Accounts and Asset Flows," 2017 Meeting Papers 1310, Society for Economic Dynamics.
    2. Marcus Hagedorn, 2021. "An Equilibrium Theory of Nominal Exchange Rates," CESifo Working Paper Series 9290, CESifo.

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