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Title: Risk Sharing through Capital Gains
Author(s): Faruk Balli, Sebnem Kalemli-Ozcan and Bent E Sørensen
Publication Date: November 2011
Keyword(s): capital markets, income insurance and international financial integration
Programme Area(s): International Macroeconomics
Abstract: We estimate channels of international risk sharing between European Monetary Union (EMU), European Union, and other OECD countries 1992-2007. We focus on risk sharing through savings, factor income flows, and capital gains. Risk sharing through factor income and capital gains was close to zero before 1999 but has increased since then. Risk sharing from capital gains, at about 6 percent, is higher than risk sharing from factor income flows for European Union countries and OECD countries. Risk sharing from factor income flows is higher for Euro zone countries, at 14 percent, reflecting increased international asset and liability holdings in the Euro area.
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Bibliographic Reference
Balli, F, Kalemli-Ozcan, S and Sørensen, B. 2011. 'Risk Sharing through Capital Gains'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8643