A basic prediction of effcient risk-sharing is that relative consumption growth rates across countries or regions …, employing a newly constructed multi-country and multi-regional data set. Within countries, we find signifcant evidence for risk …. We identify this failure of risk sharing as a border effect. We find that the border effect is substantially (but not …

emerging market economies, based on Mundell's hypothesis. An important pre-requisite for the risk-sharing benefits of a single … markets supports this assumption. In this case, we show that a single currency area may support risk sharing that could not be … achieved under floating exchange rates. Based on a simple quantitative evaluation of our model, we show that the implied risk …

A basic prediction of effcient risk-sharing is that relative consumption growth rates across countries or regions …, employing a newly constructed multi-country and multi-regional data set. Within countries, we find signifcant evidence for risk …. We identify this failure of risk sharing as a border effect. We find that the border effect is substantially (but not …