Estimados Académicos y Académicas FEN,

Les extendemos la invitación al seminario que organiza el Departamento de Economía, en el que se presentará el trabajo titulado "The Collateral Link between Volatility and Risk Sharing".

Expone: Sebastián Infante, Jefe de la Selección de Análisis del Mercado Monetario, Junta de Gobernadores de la Reserva Federal

Co-autor: Guillermo Ordoñez

Abstract: We show that the effect of aggregate volatility on idiosyncratic risk sharing depends on the nature of collateral sustaining insurance. While volatility decreases the value of private assets—exposed to more variation—it increases the value of public assets— more useful for consumption smoothing. Hence, a more volatile economy weakens risk sharing when the composition of collateral is biased toward private assets. As stable economies encourage the issuance of private collateral, they plant the seeds of their own fragility. We empirically show that the sensitivity of risk sharing to volatility depends on the collateral composition as predicted by the theory.

El formato será presencial y el seminario se desarrollará en la Sala P-305.

Saludos cordiales,

Dirección de Investigación