Risk Sharing and EMU
AbstractWhat are the prospects that risk sharing in EMU will ever attain the levels in the US? So far as the risk sharing in the US depends on interregional transfers through the budget of the federal government, those prospects are poor. So far as the risk sharing in the US takes place though market channels, they are much better. The Paper addresses the theory and evidence on the subject. The evidence would indicate that EMU still lags far behind the US as regards the pooling of risks through portfolio diversification. But there already seems to be little to distinguish the euro area from the US concerning the ability to borrow to smooth shocks. Thus, some extra risk sharing should already be taking place in the euro area through this channel. How much? Further, there is also evidence that the progress of European economic and monetary integration over the last decade has increased the symmetry of business cycles. This evidence is difficult to interpret. It could even be a sign of remaining capital-market imperfections. One of the issues in the Paper is the adequacy of the general framework that Asdrubali, Sørensen and Yosha have proposed for dealing with all of these questions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4460.
Date of creation: Jun 2004
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F15 - International Economics - - Trade - - - Economic Integration
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Yuliya Demyanyk & Charlotte Ostergaard & Bent E. Sørensen, 2007.
"U.S. Banking Deregulation, Small Businesses, and Interstate Insurance of Personal Income,"
Journal of Finance,
American Finance Association, vol. 62(6), pages 2763-2801, December.
- Demyanyk, Yuliya & Ostergaard, Charlotte & Sorensen, Bent E, 2006. "US Banking Deregulation, Small Businesses and Interstate Insurance of Personal Income," CEPR Discussion Papers 5863, C.E.P.R. Discussion Papers.
- Yuliya Demyanyk & Charlotte Ostergaard & Bent E. Sørensen, 2006. "FU.S. banking deregulation, small businesses, and interstate insurance of personal income," Working Paper 2006/09, Norges Bank.
- Bent E. Sørensen & Yuliya Demyanyk & Charlotte Ostergaard, 2005. "U.S. Banking Deregulation, Small Businesses,and Interstate Insurance of Personal Income," Working Papers 2005-02, Department of Economics, University of Houston.
- Paul de Grauwe & Francesco Paolo Mongelli, 2005.
"Endogeneities of Optimum Currency Areas: What brings Countries Sharing a Single Currency Closer together?,"
Working Papers de Economia (Economics Working Papers)
29, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
- De Grauwe, Paul & Mongelli, Francesco Paolo, 2005. "Endogeneities of optimum currency areas: what brings countries sharing a single currency closer together?," Working Paper Series 0468, European Central Bank.
- Hughes Hallett, Andrew & Scott, Drew, 2010.
"Scotland: A New Fiscal Settlement,"
SIRE Discussion Papers
2010-23, Scottish Institute for Research in Economics (SIRE).
- repec:ner:leuven:urn:hdl:123456789/120944 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.