Consumption smoothing, risk sharing and financial integration
نویسندگان
چکیده
منابع مشابه
Financial integration and consumption risk sharing and smoothing
Article history: Received 25 April 2012 Received in revised form 13 August 2013 Accepted 14 August 2013 Available online 27 August 2013 While paying careful attention to the stochastic properties of income process, this paper tests the joint rational expectation and permanent income hypothesis (RE/PIH) to clarify how and to what degree financial integration delinks national income and consumpti...
متن کاملFinancial Integration and Consumption Smoothing
We present a new empirical strategy for testing if financial integration improves risk sharing opportunities and consumption smoothing. Our test is based on a decomposition of the variance of consumption growth into a component that depends on the variance of permanent income shocks and one that depends on the variance of transitory shocks. We then test if the process of financial market integr...
متن کاملFinancial integration and international risk sharing
Conventional wisdom suggests that countries that are more financially integrated can better insure against risk. Despite widespread deregulation and financial integration in recent history, there is little evidence that countries have increased risk sharing. This work shows financial integration does not necessarily lead to significant improvement in risk sharing if financial contracts are inco...
متن کاملFinancial Access and Consumption Smoothing in Indonesia
............................................................................ 4
متن کاملWorking Papers in Trade and Development Valuation ) Effects , ) Risk ) Sharing , ) and ) Consumption ) Smoothing ) Marcel )
In theory, valuation effects (changes in net external assets of a country arising from movements in exchange rates or asset returns) are an important channel of international risk sharing as they facilitate external adjustment. However, the effects can also be economically destabilizing in the presence of frictions in the international financial system. Despite the growing significance of valua...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The World Economy
سال: 2020
ISSN: 0378-5920,1467-9701
DOI: 10.1111/twec.12996