This paper examines the changes to reinsurance regulation implemented during Spanish autarky analyze how restriction of imports financial services affects performance insurance and risk management industry. We build a novel dataset on domestic insurers reinsurers identify effects barriers purchasing foreign corporate strategies ultimately, determinants demand. find that, in spite chronic depend...

Recent empirical research documents that an exogenous rise in government purchases in a given country triggers a persistent depreciation of its real exchange rate— which raises an important puzzle, as standard macro models predict an appreciation of the real exchange rate. This paper presents a simple model with limited international risk sharing that can account for the empirical real exchange...

We formulate and solve a range of dynamic models of constrained credit/insurance that allow for moral hazard and limited commitment. We compare them to full insurance and exogenously incomplete financial regimes (autarky, saving only, borrowing and lending in a single asset). We develop computational methods based on mechanism design, linear programming, and maximum likelihood to estimate, comp...

The present paper endogeneizes the borrowing constraints on capital holdings in an infinite horizon incomplete markets model with capital accumulation. In particular, it assumes that two types of households can break their trading arrangements by going into financial autarky, in which case they are seized from any positive asset holdings and excluded from future asset trade forever. Since we sh...

In this paper we study the optimal import policy in an oligopolistic market with a given number of quantity-setting firms. In the absence of fixed costs, we show that if the policy instrument is an import quota, the optimal policy is either free trade or autarky, while if the instrument is a tariff the optimal policy is neither free trade nor autarky. In the case of fixed costs, we show that co...

We study the canonical Krugman (1979) trade model with non-CES preferences that yield autarky at finite costs. prove a non-monotone impact of gradual liberalization. At first, near autarky, emerging reduces world welfare, while free it becomes large enough to be beneficial (Krugman's result). This non-monotonicity persists under heterogenous firms. The harmful small-scale is explained by variab...

Aspirations towards technological sovereignty increasingly pervade the political debate. Yet, an ambiguous definition leaves exact goal of those aspirations and policies to fulfill them unclear. This room for partly particularly negative interpretations, such as equating concept with a strive autarky, nationalism, roll-back globalization. We develop competence-based sovereignty, which puts inno...