Article-Journal

What Drives China's Current Account?

What drives China's current account? Primarily, expected real appreciation - i.e. expected rising prices of non-tradables such as housing, education and social services - and, to a …

mathias-hoffmann
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Securitization of Mortgage Debt, Domestic Lending, and International Risk Sharing

Securitization of mortgage debt is a good idea in principle because it makes risks internationally tradable that were hitherto local and non-diversifiable: housing. We show that …

mathias-hoffmann
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The Home Bias, Capital Income Flows and Improved Long-Term Consumption Risk Sharing between Industrialized Countries

Is financial globalization associated with improved international consumption risk sharing? We argue that, theoretically, the impact of financial globalization should show up first …

michael-j.-artis
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Has Risk Sharing Increased in Asia (and Elsewhere)?

An interpretative survey with four answers: (i) consumption risk sharing seems to have increased among industrialized countries but much less in the emerging world; (ii) the …

mathias-hoffmann
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Consumption Risk Sharing over the Business Cycle: The Role of Small Firms' Access to Credit Markets

Consumption risk sharing among U.S. federal states is procyclical - it increases in U.S.-wide booms and decreases in U.S.-wide recessions. These business-cycle fluctuations in …

mathias-hoffmann
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The Swiss Franc Exchange Rate and Deviations from Uncovered Interest Parity: Global vs Domestic Factors

Simple asset pricing implies that differences in currency risk premia (aka persistent deviations from uncovered interest parity) across countries reflect differential exposures of …

mathias-hoffmann
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Equity Fund Ownership and the Cross-Regional Diversification of Household Risk

Would wider equity ownership help improve inter-regional consumption risk sharing between households? We use data from the Italian Survey of Household Income and Wealth to show …

sascha-o.-becker
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Real Exchange Rates and Real Interest Rate Differentials: A Present Value Interpretation

Although the real exchange rate–real interest rate (RERI) relationship is central to most open economy macroeconomic models, empirical support for the relationship is generally …

mathias-hoffmann
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The Lack of International Consumption Risk Sharing: Can Inflation Differentials and Trading Costs Help Explain the Puzzle?

The bulk of evidence on the lack of international risk sharing is based on regressions of idiosyncratic consumption growth on idiosyncratic output growth. This paper argues that …

mathias-hoffmann
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Financial Globalization, International Business Cycles and Consumption Risk Sharing

In spite of two decades of financial globalization, consumption‐based indicators do not seem to signal more international risk sharing. We argue that the fraction of idiosyncratic …

michael-j.-artis
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