EconPapers    
Economics at your fingertips  
 

International Consumption Risk Sharing

Fabio Canova () and Morten Ravn ()

No 1074, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines whether or not consumption risk sharing occurs in a panel of industrialized countries. We derive the international consumption insurance proposition in a simple theoretical model and show how it should be modified in more complicated models. We analyse empirically the implications of the proposition for pairs of countries over cycles of different length, and find that aggregate domestic consumption is completely insured against idiosyncratic real, demographic, fiscal and monetary shocks, but that it co-varies with domestic variables over long or infinite cycles. Also, the cross equation restrictions imposed by the theory are, in general, rejected. The policy implications of the results are discussed.

Keywords: Capital Mobility; Consumption Insurance; International Investments; Long Run Convergence (search for similar items in EconPapers)
JEL-codes: D81 E32 F21 (search for similar items in EconPapers)
Date: 1994-12
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1074 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: International Consumption Risk Sharing (1996)
Working Paper: International consumption risk sharing (1995) Downloads
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:cpr:ceprdp:1074

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1074

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-08-13
Handle: RePEc:cpr:ceprdp:1074