Template-Type: ReDIF-Paper 1.0 Author-Name: Scott C. Bradford Author-Name-First: Scott Author-Name-Last: C. Bradford Author-Email: bradford@byu.edu Author-Workplace-Name: Brigham Young University Author-Name: Digvijay Singh Negi Author-Name-First: Digvijay Author-Name-Last: Singh Negi Author-Email: digvijay@igidr.ac.in Author-Workplace-Name: Indira Gandhi Institute of Development Research Author-Name: Bharat Ramaswami Author-Name-First: Bharat Author-Name-Last: Ramaswami Author-Email: bharat.ramaswami@ashoka.edu.in Author-Workplace-Name: Ashoka University Title: International Risk Sharing for Food Staples Abstract: 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 risk sharing literature to address this question for rice, wheat, and maize, using a multilateral risk sharing model that, unlike the canonical model, accounts for trade costs. While the data show that optimal risk sharing does not occur, the wheat market comes closest to the idealized model. Our analysis also implies that both trade and storage play significant roles in smoothing domestic output shocks. Further, we find that risk sharing tends to rise with a nation’s income. length: 74 Creation-Date: 20220221 Revision-Date: Publication-Status: File-URL: https://dp.ashoka.edu.in/ash/wpaper/paper74_0.pdf File-Format: Application/pdf Number: 74 Keywords: food markets Keywords: risk sharing Keywords: international trade Keywords: supply shocks Handle: RePEc:ash:wpaper:74