Globalization and Risk Sharing
---- Acknowledgements ----
We thank Sergi Lanau for excellent research assistance. We received valuable comments from Ricardo Caballero, Martín Uribe, Mark Wright, Andrei Levchenko, Fabrizio Perri, Felipe Meza, and participants at presentations held at the CEPR Analysis of International Capital Markets Meeting, CREI and Universitat Pompeu Fabra, Foundation Banque de France, IMF, the NBER Summer Institute, the Northwestern University-European University Institute Conference, ESSIM, the World Bank-CREI conference on macroeconomic volatility, and the Fundación Areces-CREI conference on the e¤ects of globalization. We are grateful for generous financial support from Foundation Banque de France as part of the grant Managing Financial Integration.We also acknowledge financial support from the Spanish Ministry of Education and Sciences (grant SEC2002-03816), the Generalitat de Catalunya (DURSI, SGR2005 0049), and CREA-Barcelona Economics.