"We estimate channels of international risk sharing between European Monetary Union (EMU), European Union, and other OECD countries 1992-2007. We focus on risk sharing through savings, factor income flows, and capital gains. Risk sharing through factor income and capital gains was close to zero...

This paper investigates whether the recent increase in foreign equity and debt holdings has been associated with more income smoothing. In a novel approach, we decompose factor income smoothing channel into factor income inflows and outflows. We document that factor income smoothing channel is...

We estimate channels of international risk sharing between European Monetary Union (EMU), European Union, and other OECD countries 1992-2007. We focus on risk sharing through savings, factor income flows, and capital gains. Risk sharing through factor income and capital gains was close to zero...

In this paper, first, we measure the potential welfare gains from perfect risk sharing across Australian states and New Zealand regions under a possible unification. We show that New Zealand regions reap moderate gains from perfect risk sharing when they form a union with Australia, whereas for...