Financial Integration and Consumption Smoothing
نویسندگان
چکیده
منابع مشابه
Financial 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...
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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...
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We study how the 1997-1998 Asian Financial Crisis affected consumption smoothing across households in Korean prefectures. The crisis caused the cross-sectional mean and volatility of household consumption to fall substantially. We show that such falls bias two standard tests towards rejecting consumption risk sharing. Exploiting the different sizes of bias in these two tests, we find that full ...
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The dramatic impact of the current crisis on performance of businesses across sectors and economies have been headlining the business press for the past many months. Extant reconciliations of these patterns in the popular press rely on ad-hoc reasoning. Using historical data on currency crisis episodes across the world, we examine how consumers respond to a crisis and identify interesting patte...
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ژورنال
عنوان ژورنال: The Economic Journal
سال: 2011
ISSN: 0013-0133,1468-0297
DOI: 10.1111/j.1468-0297.2010.02410.x