International risk sharing in Europe: has anything changed?

Financial integration and international risk sharing

“…Empirical studies on OECD countries document mixed results. Some studies argue that risk sharing improves after 1990 (e.g., Sorensen et al (2007)), while other studies have found little evidence of better risk sharing when looking at a longer period (e.g., Moser et al (2004)). Fig.…”

Does financial globalization promote risk sharing?

“…Recent work examining the evolution of risk sharing among these economies presents conflicting results. While some studies suggest that it has increased during the recent period of globalization (e.g., Sørensen et al, 2007;Artis and Hoffman, 2006a,b;Giannone and Reichlin, 2006), others have found little evidence of better risk sharing among industrial economies (see Moser et al, 2004;Bai and Zhang, 2005).…”

EMU, EU, Market Integration and Consumption Smoothing

“…In conformity, Karras and Song (1996) report a positive effect of openness on output volatility. KPT (2003) obtain this result for consumption volatility as well (compare Moser et al (2004) and Lane (2006b)). …”