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dc.contributor.authorBECKER, Sascha
dc.contributor.authorHOFFMANN, Mathias
dc.date.accessioned2018-03-08T16:01:37Z
dc.date.available2018-03-08T16:01:37Z
dc.date.issued2006
dc.identifier.citationEuropean economic review, 2006, Vol. 50, No. 3, pp. 777-806en
dc.identifier.issn0014-2921
dc.identifier.urihttp://hdl.handle.net/1814/52149
dc.descriptionAvailable online 25 February 2005en
dc.description.abstractWe investigate empirically how industrialized countries and US states share consumption risk at horizons between 1 and 30 years. US federal states share about 50% of their permanent idiosyncratic risk through cross-state capital income flows. While insurance against transitory fluctuations in output is virtually complete, OECD countries do not share any of their permanent idiosyncratic risk. Our results suggest that purely transaction cost based theories cannot explain the home bias, since the potential welfare gains from insurance against permanent shocks would by far outweigh that of insuring against transitory variation. We conclude that permanent and transitory shocks constitute two qualitatively different kinds of risk and that various forms of endogenous market incompleteness may render permanent shocks a lot harder to insure, in particular at the international level.en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofEuropean economic reviewen
dc.relation.isversionofhttp://hdl.handle.net/1814/4869en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.titleIntra- and international risk-sharing in the short run and the long runen
dc.typeArticleen
dc.identifier.doi10.1016/j.euroecorev.2004.11.003
dc.identifier.volume50en
dc.identifier.startpage777en
dc.identifier.endpage806en
dc.identifier.issue3en
dc.description.versionBased on parts of the author’s EUI PhD thesis, 2001en


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