Financial Integration, Liquidity and the Depth of Systemic Crises

and to increase the level of long term investment. In this case, partial integration opens up the opportunity for the occurrence of extreme events. That is, the cost of liquidity can become unusually high and the optimal consumption can display both higher volatility than in autarky and negative skewness. When complete financial integration is not achievable, then extreme events can be the optimal outcome of partial integration.

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Year of publication:	2009
Authors:	Lorenzoni, Guido ; Feriozzi, Fabio ; Castiglionesi, Fabio
Institutions:	Society for Economic Dynamics - SED

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Extent:	application/pdf
Series:	2009 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2009 SED Meeting Papers Number 440
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011080299