consumption correlations by generating heterogeneous responses of consumption to income shocks across countries facing different …In this paper we examine the effects of model misspecification (robustness or RB) on international consumption … correlations in two otherwise standard small open economy models: one with perfect state observation and the other with imperfect …

of capital mobility in financial markets, RB lowers the international consumption correlations by generating … international consumption correlations as well as the other consumption moments quantitatively. Finally, we show that the main …In this paper we examine the effects of model misspecification (robustness or RB) on international consumption …

reduce cross-country consumption correlations. In addition, trade costs magnify exchange rate volatility in response to …

(er) consumption correlations (just opposite to the theory of complete financial markets) does also and still exist among European …

(er) consumption correlations (just opposite to the theory of complete financial markets) does also and still exist among European …

home bias puzzle, and the Backus-Kehoe-Kydland consumption correlations puzzle. That one simple alteration to an otherwise …