What Can Explain the Apparent Lack of International Consumption Risk Sharing?

Karen Lewis

Journal of Political Economy, 1996, vol. 104, issue 2, 267-97

Abstract: Recent research in international business cycles finds that international consumption comovements do not match the risk-sharing predictions of standard complete markets models. In this paper, the author asks whether two different types of explanations can help explain this result: (1) nonseparabilities between tradables and nontradable leisure or goods and (2) the effects of capital market restrictions on consumption risk sharing. She finds that risk sharing cannot be resolved by either explanation alone. However, when the author allows for both nonseparabilities and certain market restrictions, risk sharing among unrestricted countries cannot be rejected. Copyright 1996 by University of Chicago Press.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (303)

Downloads: (external link)
http://dx.doi.org/10.1086/262025 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.

Related works:
Working Paper: What Can Explain the Apparent Lack of International Consumption Risk Sharing? (1995)
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:ucp:jpolec:v:104:y:1996:i:2:p:267-97

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().