Valuation effects and risk sharing during the era of financial globalization
This article empirically studies the macroeconomic impact of valuation effects for a sample of 53 countries over 1980-2010. For high-income countries, the paper finds that valuation effects operate as a consumption risk-sharing channel. For emerging market economies (EMEs), the results depend on how valuation effects correlate with domestic consumption growth. Valuation effects act as a risk-sharing channel only if the correlation is negative, and are destabilizing otherwise. Consequently, the...[Show more]
|Collections||ANU Research Publications|
|Source:||North American Journal of Economics and Finance|
|1-s2.0-S1062940818304303-main.pdf||1.33 MB||Adobe PDF||Request a copy|
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