Erauskin, Iñaki - In: Economics: The Open-Access, Open-Assessment E-Journal 7 (2013) 2013-38, pp. 1-56
In this paper, we employ a portfolio approach based on a two-country world to study the impact of financial openness on … consumption-wealth ratio, and welfare should be greater in an open economy because of higher productivity and/or less volatility … because of risk sharing. The theoretical results for the growth rate depend on differences in productivity and in consumption …