The Home Bias and Capital Income Flows between Countries and Regions 1

@inproceedings{Artis2005TheHB,
  title={The Home Bias and Capital Income Flows between Countries and Regions 1},
  author={Michael J. Artis and M. Ho and Mann},
  year={2005}
}
This paper documents a marked increase in international consumption risk sharing throughout the recent globalization period. Unlike earlier studies that have found it difficult to document a consistent effect of financial globalization on international consumption comovements, we make use of the information implicit in the relative levels of consumption and output to measure long-run risk sharing among OECD countries and US federal states. We derive our empirical setup from a deliberately… CONTINUE READING