A basic prediction of effcient risk-sharing is that relative consumption growth rates across countries or regions … from cross country consumption risk sharing, it is necessary to combine multiple sources of shocks, ex-ante price setting …, employing a newly constructed multi-country and multi-regional data set. Within countries, we find signifcant evidence for risk …

A basic prediction of effcient risk-sharing is that relative consumption growth rates across countries or regions … from cross country consumption risk sharing, it is necessary to combine multiple sources of shocks, ex-ante price setting …, employing a newly constructed multi-country and multi-regional data set. Within countries, we find signifcant evidence for risk …

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 …

— the consumption/real exchange-rate anomaly or Backus-Smith puzzle — has prompted research on risk-sharing indicators with …Standard models of international risk sharing with complete asset markets predict a positive association between … relative consumption growth and real exchange-rate depreciations across countries. The striking lack of evidence for this link …