This paper investigates whether risk sharing, measured as income and consumption smoothing, among countries in the EU and the European Economic and Monetary Union (EMU) has increased since the adoption of the euro. We ask: Have the recent increase in foreign equity and debt holdings been...

We estimate the effects of deregulation of U.S. banking restrictions on the amount of interstate personal income insurance during the period 1970-2001. Interstate income insurance occurs when personal income reacts less than one-to-one to state-specific shocks to output. We find that income...

This paper examines the properties of alternative GMM procedures for estimation of the log-normal stochastic autoregessive volatility model through a large scale Monte Carlo study. We demonstrate that there is a fundamental trade-off between the number of moments, or information, included in the...

This paper represents the first attempt to estimate an explicit, structural model of credit rationing that simultaneously explains both bank and consumer behavior. Cheating by a small number of individual loan applicants induces banks to grant credit to only a proportion of observationally...

Once banking markets were opened up to geographic diversity and competition, more banks were in a better position to lend money to small businesses-even in tough times.