International risk sharing for food staples

The global output of food staples is far more stable than most individual nations' outputs, but does this lead to consumption risk sharing? This paper applies tools from the sharing literature address question for rice, wheat, and maize, using a multilateral model that, unlike canonical model, accounts trade costs. While data show that optimal not occur, wheat market comes closest idealized model. Our analysis also implies both storage play significant roles in smoothing domestic shocks. Further, we find tends rise with nation's income.