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dc.contributor.authorGiduskova, Mariaen_US
dc.contributor.authorLarrain, Borjaen_US
dc.date.accessioned2008-06-12en_US
dc.date.accessioned2012-02-23T07:59:28Z-
dc.date.available2012-02-23T07:59:28Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/55550-
dc.description.abstractWe 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.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of Boston Boston, MAen_US
dc.relation.ispartofseriesWorking paper series // Federal Reserve Bank of Boston 06-17en_US
dc.subject.jelE21en_US
dc.subject.jelF3en_US
dc.subject.jelG1en_US
dc.subject.jelO16en_US
dc.subject.jelO4en_US
dc.subject.ddc330en_US
dc.titleInternational risk-taking, volatility, and consumption growthen_US
dc.typeWorking Paperen_US
dc.identifier.ppn568812573en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Paper Series, Federal Reserve Bank of Boston

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