Evans, Martin D.; Hnatkovska, Viktoria V. - In: Journal of the European Economic Association 5 (2007) 2-3, pp. 500-508
This paper studies the effects of financial integration on macroeconomic volatility and welfare. We examine a two-sector(tradable and nontradable), two-country world economy with production in which both stocks and bonds are traded internationally, but markets are incomplete. The effects of...