Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns / Sebnem Kalemli-Ozcan, Emiliano E. Luttini, Bent Sorensen.

Format:

Book

Author/Creator:

Kalemli-Ozcan, Sebnem.

Contributor:

National Bureau of Economic Research.

Luttini, Emiliano E.

Sorensen, Bent.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19914.

NBER working paper series no. w19914

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Debt Crises and Risk Sharing

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

Using a variance decomposition of shocks to GDP, we quantify the role of international factor income, international transfers, and saving in achieving risk sharing during the recent European crisis. We focus on the sub-periods 1990-2007, 2008-2009, and 2010 and consider separately the European countries hit by the sovereign debt crisis in 2010. We decompose risk sharing from saving into contributions from government and private saving and show that fiscal austerity programs played an important role in hindering risk sharing during the sovereign debt crisis.

Notes:

Print version record

February 2014.