10.17889/E109638
Fitzgerald, Doireann
Replication data for: Trade Costs, Asset Market Frictions, and Risk Sharing
ICPSR Inter-university Consortium for Political and Social Research
2012
10.1257/aer.102.6.2700
10.1257/aer.102.6.2700
V0
I use bilateral import data to test for and quantify the importance of trade costs and asset market frictions in explaining the failure of perfect international consumption risk sharing. I find that while frictions in international asset markets significantly impede optimal consumption risk sharing between developed and developing countries
over the period 1970-2000, developed countries are close to optimal risk sharing with each other. Trade costs, in contrast, significantly impede risk sharing for all countries. (JEL E21, E44, F14, F41, G15)