Vanini, Paolo Vignola, Luigi 2001 One of the most enduring topics in financial theory is the persistence of investment risk across time. Traditional finance lacks methods for considering and hedging non-diversifiable risks. This paper is based on the general equilibrium model of Allen and Gale (1997). We extend their model in various directions: the intermediary is a firm and not a planner, financial markets are assumed to be incomplete, and the mechanism of intergenerational risk-sharing is endogenously determined. Our model allows for the analysis of optimal behavior of individuals and the intermediary together with the respective feedback processes. application/pdf https://localhost:5000/ark:/12658/srd1318070 https://susi.usi.ch/global/documents/318070 https://susi.usi.ch/documents/318070/files/1_fin0104.pdf eng http://springerlink.metapress.com/link.asp?id=g82p7q153747 info:eu-repo/semantics/altIdentifier/ark/12658/srd1318070 info:eu-repo/semantics/openAccess License undefined European Finance Review. - 2002, vol. 6, no. 1-30 Cross-sectional risk Intertemporal risk-smoothing Risk-sharing , Time diversification Incomplete financial markets info:eu-repo/classification/udc/33 Optimal decision-making with time diversification http://purl.org/coar/resource_type/c_6501