Economic integration, industrial specialization, and the asymmetry of macroeconomic fluctuations

• 成果类型: Article; Proceedings Paper
• 署名作者: Kalemli-Ozcan, S; Sorensen, BE; Yosha, O
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Kansas City; University of Houston System; University of Houston; Tel Aviv University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(01)00097-6
• 发表日期: 2001
• 页码: 107-137
• 关键词: capital market integration; monetary union; risk sharing; welfare gains

摘要

We show empirically that regions with a more specialized production structure exhibit output fluctuations that are less correlated with those of other regions (less 'symmetric' fluctuations). Combined with the causal relation running from capital market integration to regional specialization found in an earlier study, this finding supports the idea that higher capital market integration leads to less symmetric fluctuations. This mechanism counterbalances the effect of lower trade-barriers on the symmetry of fluctuations quantified by Frankel and Rose (1998). Deriving a simple closed form expression for the gains from risk sharing for CRRA utility is an independent contribution of the present article. (C) 2001 Elsevier Science B.V. All rights reserved.