TY  - JOUR
AU  - Rose,Andrew K.
AU  - Spiegel,Mark M.
TI  - International Financial Remoteness and Macroeconomic Volatility
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14336
PY  - 2008
Y2  - September 2008
UR  - http://www.nber.org/papers/w14336
L1  - http://www.nber.org/papers/w14336.pdf
N1  - Author contact info:
Andrew K. Rose
Haas School of Business Administration
University of California, Berkeley
Berkeley, CA 94720-1900
Tel: 510/642-6609
Fax: 510/642-4700
E-Mail: arose@haas.berkeley.edu

Mark M. Spiegel
Federal Reserve Bank of San Francisco
101 Market Street
San Francisco, CA 94105
E-Mail: mark.spiegel@sf.frb.org
AB  - This paper shows that proximity to major international financial centers seems to reduce business cycle volatility.  In particular, we show that countries that are further from major locations of international financial activity systematically experience more volatile growth rates in both output and consumption, even after accounting for political institutions, trade, and other controls.  Our results are relatively robust in the sense that more financially remote countries are more volatile, though the results are not always statistically significant.  The comparative strength of this finding is in contrast to the more ambiguous evidence found in the literature.
ER  -