This paper examines how bilateral economic linkages shape consumption synchronization across economies. Using state-level data from the US, we find that the degree of bilateral consumption risk sharing decreases with geographic distance. To explain this novel fact, we develop an open economy...

During the last two decades, the degree of openness of national financial systems has increased substantially. At the same time, asymmetries in information and other financial market frictions have remain prevalent. We study both empirically and theoretically the implications of the opening up...

Shift-share analysis is a decomposition technique that is commonly used to measure attributes of regional change. In this method, a large region is decomposed into its relevant functional and regional parts. By decomposing smaller regions embedded in a large region, it allows us to understand...