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Abstract
We present a canonical pure exchange model of an economy with aggregate and individual risks. We show that the economy always has a basic contingent commodity equilibrium in which prices depend only on aggregate risks. We introduce an information structure and a number which expresses the maximum rate at which information is revealed in any time period (the branching number). We show that if the information structure associated with the aggregate risks is such that the branching number is not greater than the number of trading opportunities in futures (the number of commodities) then generically each basic contingent commodity equilibrium allocation can be achieved as an equilibrium allocation on a system of spot and futures markets for the underlying commodities and insurance markets for the individual risks.