Consumption Smoothing Across States and Time: International Insurance vs. Foreign Loans

When countries, and macroeconomic models, open up to international capital markets, the welfare gains available through completion of financial markets for contingencies potentially are much greater than those available from access to noncontingent international borrowing. Intercasual insurance, reducing exposure to differences in contingent future cases, and not intertemporal smoothing between now and then is the big story in open economies although the two must be told together.

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Year of publication:	2004
Authors:	von Furstenberg, George M.
Publisher:	Frankfurt a. M. : Deutsche Bundesbank
Subject:	Versicherung \| international \| Internationale Anleihe \| Gesamtwirtschaftlicher Konsum \| Zeitpräferenz \| Risiko \| Wohlfahrtseffekt \| Theorie \| Schätzung \| Welt \| risk sharing \| Consumption Smoothing \| International Economic Insurance \| Arrow-Debreu Securities \| Foreign Loans \| International Risk Sharing

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Series:	Discussion Paper Series 1 ; 2004,13
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	391525301 [GVK] hdl:10419/19480 [Handle] RePEc:zbw:bubdp1:2158 [RePEc]
Classification:	F36 - Financial Aspects of Economic Integration ; G22 - Insurance; Insurance Companies ; E21 - Consumption; Saving
Source:	EconStor

Persistent link: https://www.econbiz.de/10010295640