Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73636
Authors: 
Leibrecht, Markus
Scharler, Johann
Year of Publication: 
2009
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 0914
Abstract: 
In this paper we empirically explore how characteristics of the domestic financial system influence the international allocation of consumption risk using a sample of OECD countries. Our results show that the extent of risk sharing achieved does not depend on the overall development of the domestic financial system per se. Rather, it depends on how the financial system is organized. Specifically, we find that coun- tries characterized by developed financial markets are less exposed to idiosyncratic risk, whereas the development of the banking sector contributes little to the inter- national diversification of consumption risk.
Subjects: 
International Risk Sharing
Financial Development
Financial System
JEL: 
F36
F41
Document Type: 
Working Paper

Files in This Item:
File
Size
189.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.