We assess to which degree an international transfer mechanism can enhance consumption risk sharing as well as … analyze the changing dynamics that a EUBS brings about. We find that a EUBS can provide risk sharing by stabilizing relative …-spending shocks. Yet, since this trade-off between allocative efficiency and consumption risk sharing does not exist after certain …

This paper estimates an empirical nonstationary panel regression model that tests long-run consumption risk sharing … risk sharing, which is mainly about risks at business cycle frequency. Since our methodology focuses on identifying … cointegrating relationships while allowing for arbitrary short-run dynamics, we can obtain a consistent estimate of long-run risk …

inflows serve as an important channel through which risk sharing takes place in the developing world. Although the extent of … risk sharing. Using a large sample of 86 developing countries for the period 1990-2010, we establish that remittance … risk sharing on average stands at 3.3%, there is substantial cross-country variation found in our sample, ranging from 38 …