Citation

Discussion Paper Details

Please find the details for DP9541 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns

Author(s): Sebnem Kalemli-Ozcan, Emiliano Luttini and Bent E Sørensen

Publication Date: July 2013

Keyword(s): Capital Markets, Income Insurance and International Financial Integration

Programme Area(s): International Macroeconomics

Abstract: Using a variance decomposition of shocks to GDP, we quantify the role of international factor income, international transfers, and saving in achieving risk sharing during the recent European crisis. We focus on the sub-periods 1990--2007, 2008--2009, and 2010 and consider separately the European countries hit by the sovereign debt crisis in 2010. We decompose risk sharing from saving into contributions from government and private saving and show that fiscal austerity programs played an important role in hindering risk sharing during the sovereign debt crisis.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9541

Bibliographic Reference

Kalemli-Ozcan, S, Luttini, E and Sørensen, B. 2013. 'Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9541