Capital Mobility and International Sharing of Cyclical Risk / Julien Bengui, Enrique G. Mendoza, Vincenzo Quadrini.

Format:

Book

Author/Creator:

Bengui, Julien.

Contributor:

National Bureau of Economic Research.

Mendoza, Enrique G.

Quadrini, Vincenzo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w18372.

NBER working paper series no. w18372

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

This paper investigates whether the international globalization of financial markets allows for significant cross-country risk-sharing at the business cycle frequency. We find that cross-country risk-sharing is still limited and this is unlikely to be the result of financial frictions that limit state-contingent contracts. Part of the limited international risk sharing could be the consequence of frictions that de-facto reduce the short-term mobility of financial capital. But even with these frictions we find significant divergence between model predictions and the data.

Notes:

Print version record

September 2012.