Banks, Financial Markets and International Consumption Risk Sharing

Leibrecht Markus and Johann Scharler
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Leibrecht Markus: Vienna University of Economics and Business,Vienna, Austria

German Economic Review, 2012, vol. 13, issue 3, 331-351

Abstract: In this article, we explore how characteristics of the domestic financial system influence the international allocation of consumption risk in a sample of OECD countries. Our results show that the extent of risk sharing achieved does not depend on the overall development of the domestic financial system per se. Rather, it depends on how the financial system is organized. Countries characterized by developed financial markets are less exposed to idiosyncratic risk, whereas the development of the banking sector contributes little to the international diversification of consumption risk.

Keywords: International risk sharing; Financial development; Financial system (search for similar items in EconPapers)
Date: 2012
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Related works:
Journal Article: Banks, Financial Markets and International Consumption Risk Sharing (2012)
Working Paper: Banks, Financial Markets and International Consumption Risk Sharing (2010)
Working Paper: Banks, Financial Markets and International Consumption Risk Sharing (2009)
Working Paper: Banks, Financial Markets and International Consumption Risk Sharing (2009)
Working Paper: Banks, financial markets, and international consumption risk sharing (2009)
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DOI: 10.1111/j.1468-0475.2011.00560.x

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