In this paper, we examine the potential welfare gains and channels of income smoothing for 14 Pacific Island countries (PIC). We find that the overall welfare gains across all PIC (in particular Kiribati, Palau and Papua New Guinea) are higher than the potential gains from risk sharing for OECD...

We examine the impact of the global financial crisis on the degree of international income and consumption risk-sharing among industrial economies using returns on cross-border portfolio holdings (e.g., debt, equity, FDI). We split the returns from the net foreign holdings as receipts (inflows)...