Consumption Volatility and Financial Openness

Economic theory predicts that the integration of financial markets lowers the volatility of consumption. In this paper, we study long-term trends in the consumption volatility of the G7 countries. Using different measures of financial openness, we find some evidence that greater financial openness has been associated with lower consumption volatility. However, volatility of consumption relative to output has not declined.

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Year of publication:	2005
Authors:	Buch, Claudia M. ; Yener, Serkan
Publisher:	Kiel : Kiel Institute for World Economics (IfW)
Subject:	Gesamtwirtschaftlicher Konsum \| Volatilität \| Kapitalmarktliberalisierung \| Internationaler Finanzmarkt \| Marktintegration \| Schätzung \| G-7-Staaten \| Consumption volatility \| financial integration \| G7 countries

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Series:	Kiel Working Paper ; 1260
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	50394680X [GVK] hdl:10419/17811 [Handle] RePEc:zbw:ifwkwp:1260 [RePEc]
Classification:	F41 - Open Economy Macroeconomics ; F36 - Financial Aspects of Economic Integration
Source:	EconStor

Persistent link: https://www.econbiz.de/10010260540