Assessing the Degree of International Consumption Risk Sharing

Hevia, Constantino ; Serven, Luis

World Bank, Washington, DC

关键词: insurance;    risk management;    risk sharing;    consumption risk;    financial globalization;   

DOI  :  10.1596/1813-9450-7867
RP-ID  :  WPS7867

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines the extent ofconsumption risk sharing for a group of 50 high-income anddeveloping countries. The analysis is based on the empiricalimplementation of a model of partial consumption insurancewhose parameters have the natural interpretation ofcoefficients of partial risk sharing even when the 0hypothesis of perfect risk sharing is rejected. Theestimation results show that high-income countries exhibithigher degrees of risk sharing than developing countries,and that the gap between the two country groups appears tohave widened over the period of financial globalization.Moreover, the pattern of consumption risk sharing is relatedto the degree of financial openness: countries with moreopen capital accounts, and larger stocks of foreign assetsand liabilities exhibit larger degrees of risk sharing. Yet,larger countries in terms of gross domestic product showlower degrees of consumption risk sharing.