Assessing the degree of international consumption risk sharing

Constantino Hevia, Luis Serven, Constantino Hevia and Luis Serven
Authors registered in the RePEc Author Service: Luis Servén and Constantino Hevia

No 7867, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines the extent of consumption risk sharing for a group of 50 high-income and developing countries. The analysis is based on the empirical implementation of a model of partial consumption insurance whose parameters have the natural interpretation of coefficients of partial risk sharing even when the null hypothesis of perfect risk sharing is rejected. The estimation results show that high-income countries exhibit higher degrees of risk sharing than developing countries, and that the gap between the two country groups appears to have widened over the period of financial globalization. Moreover, the pattern of consumption risk sharing is related to the degree of financial openness: countries with more open capital accounts, and larger stocks of foreign assets and liabilities exhibit larger degrees of risk sharing. Yet, larger countries in terms of gross domestic product show lower degrees of consumption risk sharing.

Keywords: International Trade and Trade Rules; Natural Disasters; Consumption; Fiscal&Monetary Policy; Macroeconomic Management; Trade and Multilateral Issues (search for similar items in EconPapers)
Date: 2016-10-19
References: Add references at CitEc
Citations:

Downloads: (external link)
http://documents.worldbank.org/curated/en/686991476883759248/pdf/WPS7867.pdf (application/pdf)

Related works:
Journal Article: Assessing the degree of international consumption risk sharing (2018)
Working Paper: Assessing the degree of international consumption risk sharing (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:7867

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().