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US Interstate Risk Sharing: A Post‐Crisis Examination
Author(s) -
Duwicquet Vincent,
Farvaque Etienne
Publication year - 2018
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12167
Subject(s) - financial crisis , government (linguistics) , modalities , capital (architecture) , business , economics , financial system , geography , macroeconomics , sociology , social science , linguistics , philosophy , archaeology
This paper examines the modalities of risk sharing in the United States, and their evolution between the pre‐financial crisis period and the post‐crisis one. Reassessing the mechanisms at play in the US economy, we document a lower share of adjustment coming from capital markets, in comparison to previous estimates. The measures taken during the crisis have not impacted the absolute degree of risk sharing, although the relative size of its components has changed, with a stronger role for the federal government.