TY - BOOK ID - 11277150 TI - International Risk Sharing During the Globalization Era AU - Matsumoto, Akito. AU - Flood, Robert. AU - Marion, Nancy. AU - International Monetary Fund. PY - 2009 SN - 1451917783 1451873565 1452771251 9786612844157 1282844156 1462371906 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Commerce KW - Business & Economics KW - International Commerce KW - Globalization. KW - Financial risk. KW - Business risk (Finance) KW - Money risk (Finance) KW - Global cities KW - Globalisation KW - Internationalization KW - Risk KW - International relations KW - Anti-globalization movement KW - Finance: General KW - Macroeconomics KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Aggregate Factor Income Distribution KW - Macroeconomics: Production KW - General Financial Markets: General (includes Measurement and Data) KW - Finance KW - Consumption KW - Income KW - Production growth KW - Private consumption KW - Emerging and frontier financial markets KW - Economics KW - Production KW - Economic theory KW - Financial services industry KW - Japan UR - https://www.unicat.be/uniCat?func=search&query=sysid:11277150 AB - Though theory suggests financial globalization should improve international risk sharing, empirical support has been limited. We develop a simple welfare-based measure that captures how far countries are from the ideal of perfect risk sharing. We then take it to data and find international risk sharing has, indeed, improved during globalization. Improved risk sharing comes mostly from the convergence in rates of consumption growth among countries rather than from synchronization of consumption at the business cycle frequency. Our finding explains why many existing measures fail to detect improved risk sharing-they focus only on risk sharing at the business cycle frequency. ER -