How big are potential welfare gains from international sharing?
By: Eric Van Wincoop.
Contributors: Federal Reserve Bank of New York.
Series: Staff reports ;; no. 37; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 37.
Publisher: Federal Reserve Bank of New York
Published: 1998
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Risk.; International finance.; Capital market.
Description: "There is extensive evidence that the degree of risksharing accomplished by international financial markets is low.  Some have argued that this is the result of small potential benefits from risksharing.  The gains from riskpooling that have been reported in the literature range from negligible to enormous.  This paper documents to what extent the results are sensitive to the parameterization of preferences, and assumptions about the stochastic process and measurement of the endowment.  We find that for realistic assumptions about the underlying factors, the potential gains from risksharing are quite sizable.  For OECD countries they are equivalent to increases in tradables consumption in the range of 1.1 to 3.5 percent for a 50 year horizon, and 2.5 to 7.4 percent for a 100 year horizon"--Federal Reserve Bank of New York web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 2/1/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.