University of Texas Austin
Seminar in International Economic Problems

Mini lecture series on International Risk Sharing

Fabrizio Perri


Class 1. Basic questions, definitions and methods. The quantity approach

a.    The endowment model with one and two goods. Cole and Obstfeld

b.    The production model with one good. Baxter and Crucini

c.     Two goods production model. Backus Kehoe and Kydland

d. Risk sharing with limited enforcement. Backus Smith

Class 2.  The portfolio approach

a.    Solving for country portfolios that decentralize complete risk sharing allocations. Baxter and Jermann. Heathcote and Perri. Kollmann

b.    Solving directly for equilibrium country portfolios. Heathcote and Perri. Devereux and Sutherland

Class 3. New directions

a.    Measuring international risk sharing using asset prices. Brandt Cochrane and Santa Clara, Colacito and Croce

b.    International risk sharing with imperfect domestic risk sharing. Kocherlakota and Pistaferri