@techreport{Giduskova2006International,
abstract = {We show that countries that take on more international risk are rewarded with higher expected consumption growth. International risk is defined as the beta of a country's consumption growth with world consumption growth. High-beta countries hold more foreign assets, as predicted by the theory. Despite the positive effects of beta, a country's idiosyncratic volatility is negatively correlated with expected consumption growth. Therefore, uninsured shocks affect not only current growth, but also future consumption growth. High-volatility countries have worse net foreign asset positions, suggesting that solvency constraints limit their future growth.},
address = {Boston, Mass.},
author = {Maria Giduskova and Borja Larrain},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E21; F3; G1; O16; O4; 330},
language = {eng},
number = {06-17},
publisher = {Federal Reserve Bank of Boston},
title = {International risk-taking, volatility, and consumption growth},
type = {Working paper series // Federal Reserve Bank of Boston},
url = {http://hdl.handle.net/10419/55550},
year = {2006}
}
