The Dynamics of Optimal Risk Sharing
---- Acknowledgements -----
We would like to thank Philip Bond, Sam Howison, Ronnie Sircar and seminar participants at the Chinese University of Hong Kong, Columbia, IPAM, LSE, Mannheim, NYU, Northwestern, Southampton, Studienzentrum Gerzensee and Toulouse for helpful comments. We would also like to thank the Institute for Advanced Study and the Studienzentrum Gerzensee for their hospitality. Finally, Christopher Harris would like to thank the British Academy for financial support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.