Trade Costs, Asset Market Frictions, and Risk Sharing

• 成果类型: Article
• 署名作者: Fitzgerald, Doireann
• 署名单位: Stanford University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.102.6.2700
• 发表日期: 2012
• 页码: 2700-2733
• 关键词: real exchange-rates; equilibrium; consumption; gravity; explain; economies; welfare; gains; MODEL

摘要

I use bilateral import data to test for and quantify the importance of trade costs and asset market frictions in explaining the failure of perfect international consumption risk sharing. I find that while frictions in international asset markets significantly impede optimal consumption risk sharing between developed and developing countries over the period 1970-2000, developed countries are close to optimal risk sharing with each other. Trade costs, in contrast, significantly impede risk sharing for all countries. (JEL E21, E44, F14, F41, G15)