International consumption risk sharing and fiscal policy

Koenig G., Zeyneloglu I.

ECONOMICS BULLETIN, cilt.32, sa.2, ss.1250-1260, 2012 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 32 Sayı: 2
  • Basım Tarihi: 2012
  • Dergi Adı: ECONOMICS BULLETIN
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus
  • Sayfa Sayıları: ss.1250-1260
  • Galatasaray Üniversitesi Adresli: Evet

Özet

he present paper uses a two-country stochastic general equilibrium model assuming incomplete financial markets and non-separable consumer preferences to show how optimal fiscal responses to an asymmetric productivity shock can mitigate the worsening of the international consumption risk sharing following the shock. It also identifies the conditions under which the gains from fiscal stabilization can be improved by cooperative responses.