Emiliano E. Luttini

Central Bank of Chile
Research Division
Agustinas 1180
Santiago 8340454
Santiago Metropolitan Region
Tel: +56 2 2670 2000

E-Mail: eluttini@bcentral.cl
Institutional Affiliation: Central Bank of Chile

NBER Working Papers and Publications

February 2014Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns
with Sebnem Kalemli-Ozcan, Bent Sorensen: w19914
Using a variance decomposition of shocks to GDP, we quantify the role of international factor income, international transfers, and saving in achieving risk sharing during the recent European crisis. We focus on the sub-periods 1990-2007, 2008-2009, and 2010 and consider separately the European countries hit by the sovereign debt crisis in 2010. We decompose risk sharing from saving into contributions from government and private saving and show that fiscal austerity programs played an important role in hindering risk sharing during the sovereign debt crisis.

Published: Sebnem Kalemli-Ozcan & Emiliano Luttini & Bent Sørensen, 2014. "Debt Crises and Risk-Sharing: The Role of Markets versus Sovereigns," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(1), pages 253-276, 01. citation courtesy of

National Bureau of Economic Research
1050 Massachusetts Ave.
Cambridge, MA 02138

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