The economic consequences of migration have become the topic many recent contributions in theoretical and applied economics. However, only a handful papers dealt with implications of...

In this paper, we show that within the set of stochastic three-periodlived OLG economies with productive assets (such as land), markets are necessarily sequentially incomplete, and agents in the model do not share risk optimally. We start by characterizing perfect risk sharing and …nd that it requires a state-dependent consumption claims which depend only on the exogenous shock realizations. We...