Regarding risk sharing, it is interesting to note that in the US, according to a particularly interesting research, capital markets would smoothe out 39 % of the asymmetric shocks to gross state product (the equivalent of our GDP), the credit channel would smoothe out 23 % of such shocks and the federal government, through the fiscal channel, 13 %.
25 % of the shocks would not be smoothed out. 1 Hence in the United States financial markets and financial institutions would contribute 62 % to the absorption of state idiosyncratic shocks. The effect is very substantially higher than the effect of the federal budget.