Journal ArticleDOI
Channels of Interstate Risk Sharing: United States 1963–1990
Abstract:
We develop a framework for quantifying the amount of risk sharing among states in the United States, and construct data that allow us to decompose the cross-sectional variance in gross state product into several components which we refer to as levels of smoothing. We find that 39 percent of shocks to gross state product are smoothed by capital markets, 13 percent are smoothed by the federal government, and 23 percent are smoothed by credit markets. The remaining 25 percent are not smoothed. We also decompose the federal government smoothing into subcategories: taxes, transfers, and grants to states.read more
Citations
More filters
ReportDOI
The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?
Maurice Obstfeld,Kenneth Rogoff +1 more
TL;DR: In this paper, the authors argue that by explicitly introducing costs of international trade (narrowly, transport costs, but more broadly, tariffs, nontariff barriers, and other trade costs), one can go far toward explaining a great number of the main empirical puzzles that international macroeconomists have struggled with over twenty-five years.
Journal ArticleDOI
The consolidation of the financial services industry: Causes, consequences, and implications for the future
TL;DR: In this article, a framework for evaluating the causes, consequences, and future implications of financial services industry consolidation is proposed, and a review of the extant research literature within the context of this framework is provided.
Posted Content
Transition Modeling and Econometric Convergence Tests
Peter C.B. Phillips,Donggyu Sul +1 more
TL;DR: In this article, a nonlinear time varying factor model is proposed to represent the behavior of economies in transition allowing for a wide range of possible time paths and individual heterogeneity, and a simple regression based convergence test is developed, whose asymptotic properties are analyzed under both null and local alternatives.
Journal ArticleDOI
Transition Modeling and Econometric Convergence Tests
Peter C.B. Phillips,Donggyu Sul +1 more
TL;DR: In this article, a nonlinear time varying factor model is proposed to represent the behavior of economies in transition, allowing for a wide range of possible time paths and individual heterogeneity, and a framework of asymptotic representations for the factor components that enables the development of econometric procedures of estimation and testing.
Journal ArticleDOI
Trade, finance, specialization, and synchronization
TL;DR: In this article, the linkages between trade in goods, financial openness, specialization, and business cycle synchronization are evaluated in the context of a system of simultaneous equations, and the results obtain in a variety of data sets, measurement strategies, and specifications.