Public versus Private Risk Sharing
---- Acknowledgements -----
We would like to thank Andrew Atkeson, V.V. Chari, Hal Cole, Joanne Feeney, Ken Judd, Patrick Kehoe, Tim Kehoe, Narayana Kocherlakota, Edward Prescott, Tom Sargent and seminar participants at numerous institutions for helpful comments and suggestions. All remaining errors are our own. A previous version of this paper has circulated under the title "Risk Sharing: Private
Insurance Markets or Redistributive Taxation? The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.