Penalva, José S.Universitat Pompeu Fabra. Departament d'Economia i Empresa2017-07-262017-07-261997-10-01Review of Economic Dynamics 4 (2001), pp. 790-822http://hdl.handle.net/10230/1174This paper looks at the dynamic management of risk in an economy with discrete time consumption and endowments and continuous trading. I study how agents in such an economy deal with all the risk in the economy and attain their Pareto optimal allocations by trading in a few natural securities: private insurance contracts and a common set of derivatives on the aggregate endowment. The parsimonious nature of the implied securities needed for Pareto optimality suggests that in such contexts complete markets is a very reasonable assumption.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commonsinfo:eu-repo/semantics/workingPaperrisk-sharinginsurancehedgingpoint-processescomplete marketsgeneral equilibriumFinance and Accountinginfo:eu-repo/semantics/openAccess