Kiel Working Papers, Kiel Institute for World Economics
No 1260:
Consumption Volatility and Financial Openness
Claudia M. Buch and Serkan Yener
Abstract: Economic theory predicts that the integration of financial
markets lowers the volatility of consumption. In this paper, we study
long-term trends in the consumption volatility of the G7 countries. Using
different measures of financial openness, we find that greater financial
openness has been associated with lower consumption volatility in Canada
and Italy. In France, Germany, Japan, and the UK, consumption volatility
has declined following equity market liberalization but not following
capital account liberalization as such.
Keywords: Consumption volatility, financial integration, G7 countries; (follow links to similar papers)
JEL-Codes: F36,; F41; (follow links to similar papers)
32 pages, July 2005
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
kap1260.pdf
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom