Gains from Financial Integration in the European Union: Evidence for New and Old Members
Yuliya Demyanyk () and
Vadym Volosovych ()
No 6009, Working Papers from Department of Economics, College of Business, Florida Atlantic University
We estimate potential welfare gains from financial integration and corresponding better insurance against country-specific shocks to output (risk sharing) for the twenty-five European Union countries. Using theoretical utility-based measures we express the gains from risk sharing as the utility equivalent of a permanent increase in consumption. We report positive potential welfare gains for all the EU countries if they move toward full risk sharing. Ten country-members who joined the Union in 2004 have more volatile or counter-cyclical consumption and output and would obtain much higher potential gains than the longer-standing fifteen members.
Keywords: EU enlargement; financial integration; welfare gains; risk sharing (search for similar items in EconPapers)
JEL-codes: E32 F15 F36 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2006-12, Revised 2007-08
New Economics Papers: this item is included in nep-eec, nep-mac and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://home.fau.edu/vvolosov/web/DV_EU_20Feb2008JIMFproofed.pdf Revised version, 2007 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://home.fau.edu/vvolosov/web/DV_EU_20Feb2008JIMFproofed.pdf [301 Moved Permanently]--> https://home.fau.edu/vvolosov/web/DV_EU_20Feb2008JIMFproofed.pdf)
Journal Article: Gains from financial integration in the European Union: Evidence for new and old members (2008)
Working Paper: Gains from financial integration in the European union: evidence for new and old members (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fal:wpaper:06009
Access Statistics for this paper
More papers in Working Papers from Department of Economics, College of Business, Florida Atlantic University Contact information at EDIRC.
Bibliographic data for series maintained by Vadym Volosovych ( this e-mail address is bad, please contact ).