Risk sharing in currency unions: The migration channel

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dc.contributor.author Kohler, Wilhelm
dc.contributor.author Müller, Gernot J.
dc.contributor.author Wellmann, Susanne
dc.date.accessioned 2021-04-29T14:30:42Z
dc.date.available 2021-04-29T14:30:42Z
dc.date.issued 2021-03-24
dc.identifier.other 1757277005
dc.identifier.uri http://hdl.handle.net/10900/114670
dc.identifier.uri http://nbn-resolving.de/urn:nbn:de:bsz:21-dspace-1146708 de_DE
dc.identifier.uri http://dx.doi.org/10.15496/publikation-56045
dc.description.abstract Country-specific business cycle fluctuations are potentially very costly for member states of currency unions because they lack monetary autonomy. The actual costs depend on the extent to which consumption is shielded from these fluctuations and thus on the extent of risk sharing across member states. The literature to date has focused on financial and credit markets as well as on transfer schemes as channels of risk sharing. In this paper, we show how the standard approach to quantify risk sharing can be extended to account for migration as an additional channel of cross-country risk sharing. In theory, migration should play a key role when it comes to insulating per capita consumption from aggregate fluctuations, and our estimates show that it does so indeed for US states, but not for the members of the Euro area (EA). Consistent with these results, we also present survey evidence which shows that migration rates are about 20 times higher in the US. Lastly, we find, in line with earlier work, that risk sharing is generally much more limited across EA members. en
dc.language.iso en de_DE
dc.publisher Universität Tübingen de_DE
dc.rights ubt-podno de_DE
dc.rights.uri http://tobias-lib.uni-tuebingen.de/doku/lic_ohne_pod.php?la=de de_DE
dc.rights.uri http://tobias-lib.uni-tuebingen.de/doku/lic_ohne_pod.php?la=en en
dc.subject.classification Economics de_DE
dc.subject.ddc 330 de_DE
dc.subject.other Risk sharing en
dc.subject.other Currency unions en
dc.subject.other Labour migration en
dc.subject.other Migration rates en
dc.subject.other Euro Area en
dc.title Risk sharing in currency unions: The migration channel en
dc.type Aufsatz de_DE
utue.publikation.fachbereich Wirtschaftswissenschaften de_DE
utue.publikation.fakultaet 6 Wirtschafts- und Sozialwissenschaftliche Fakultät de_DE
utue.opus.portal utwpbusinesseco de_DE
utue.publikation.source University of Tübingen Working Papers in Business and Economics ; No. 144 de_DE


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