NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Francesca Viani

Bank of Spain
C/ Alcalá, 48
Madrid SPAIN

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NBER Working Papers and Publications

October 2011Traded and Nontraded Goods Prices, and International Risk Sharing: an Empirical Investigation.
with Giancarlo Corsetti, Luca Dedola: w17501
Accounting for the pervasive evidence of limited international risk sharing is an important hurdle for open-economy models, especially when these are adopted in the analysis of policy trade-offs likely to be affected by imperfections in financial markets. Key to the literature is the evidence, at odds with efficiency, that consumption is relatively high in countries where its international relative price (the real exchange rate) is also high. We reconsider the relation between cross-country consumption differentials and real exchange rates, by decomposing it into two components, reflecting the prices of tradable and nontradable goods, respectively. We document that, as a common pattern among OECD countries, both components tend to contribute to the overall lack of risk sharing, with the tr...

Published: Giancarlo Corsetti & Luca Dedola & Francesca Viani, 2012. "Traded and Nontraded Goods Prices, and International Risk Sharing: An Empirical Investigation," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 8(1), pages 403 - 466. citation courtesy of

August 2011Traded and Nontraded Goods Prices, and International Risk Sharing: An Empirical Investigation
with Giancarlo Corsetti, Luca Dedola
in NBER International Seminar on Macroeconomics 2011, Jeffrey Frankel and Christopher Pissarides, organizers
 
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