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The Impact of the EMU on Channels of Risk Sharing between Member Countries

In: Proceedings of the Conference on Human and Economic Resources

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Author Info
Faruk Balli (Houston University)
Bent E. Sørensen (Houston University)

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Abstract

We estimate the amount of income and consumption smoothing (risk sharing) between countries in the European Monetary Union (EMU) and between other developed countries during the period 1970–2003. In particular, we examine if EMU countries display different patterns of risk sharing than other developed countries in the period leading up to and following the formation of the EMU in 1999. We find that income smoothing from international factor income has increased in the EMU since the introduction of the EMU and that consumption smoothing from procyclical government saving has declined steeply in the EMU since the signing of the Maastricht treaty.

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This chapter was published in: Faruk Balli & Bent E. Sørensen Proceedings of the Conference on Human and Economic Resources, , pages 399-429, 2006.

This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number 200633.

Handle: RePEc:izm:prcdng:200633

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Related research
This chapter was published in the following book, which is listed on IDEAS:
Oguz Esen & Ayla Ogus (ed.), 2006. "Proceedings of the International Conference on Human and Economic Resources," Proceedings of the IUE-SUNY Cortland Conference in Economics, Izmir University of Economics, number 2006, November. [Downloadable!]
Keywords: EMU; Risk Sharing; economic determinants of risk sharing;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Faruk, Balli, 2006. "New Patterns in International Portfolio Allocation and Income Smoothing," MPRA Paper 10121, University Library of Munich, Germany, revised 14 Aug 2008. [Downloadable!]
  2. Balli, Faruk & Osman, Mohammad & Louis, Rosmy J., 2008. "International Portfolio Inflows to GCC Markets. Are There any General Patterns?," MPRA Paper 10158, University Library of Munich, Germany. [Downloadable!]
    Other versions:
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