Global Diversification, Growth and Welfare with Imperfect Markets for Goods

Détails

ID Serval
serval:BIB_03D630A3EADA
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Global Diversification, Growth and Welfare with Imperfect Markets for Goods
Périodique
The Review of Financial Studies
Auteur(s)
Dumas, B., Uppal, R. 
Statut éditorial
Publié
Date de publication
2001
Volume
14
Numéro
1
Pages
277-305
Résumé
In this article we examine the effect of the imperfect mobility of goods on international risk sharing and, through that, on the investment in risky projects, welfare, and growth. Our main result is that the welfare gain from integration of financial markets is not greatly reduced by the presence of goods market imperfections, modeled as a cost of transferring goods from one country to the other. We also find that the gain is nonmonotonic with respect to investors' risk aversion and the aggregate volatility of output growth. The policy implication to be drawn is that financial market integration is a worthwhile goal to pursue even when full goods mobility has not been achieved. Article published by Oxford University Press on behalf of the Society for Financial Studies in its journal, The Review of Financial Studies.
Création de la notice
19/11/2007 10:27
Dernière modification de la notice
03/03/2018 13:21
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