Arbeitspapier
Financial Integration with Heterogeneous Beliefs
In this paper we study the effects of financial integration on risk-sharing. Conventional macroeconomic theory suggests that the integration of financial markets improves welfare. In contrast to the literature we assume that households have heterogeneous beliefs. Because of the differences in beliefs, households are not only sharing the risk but also speculating. We show that with speculation, financial integration can increase the risk in the economy and that a full financial integration is not always beneficial. We also have a numerical example for a small set of countries and show that the losses due to heterogeneous beliefs are small.
- Sprache
-
Englisch
- Erschienen in
-
Series: Discussion Paper Series ; No. 568
- Klassifikation
-
Wirtschaft
- Thema
-
Heterogeneous Beliefs
Financial Integration
Incomplete Markets
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Rieger, Jörg
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Heidelberg, Department of Economics
- (wo)
-
Heidelberg
- (wann)
-
2014
- DOI
-
doi:10.11588/heidok.00017058
- Handle
- URN
-
urn:nbn:de:bsz:16-heidok-170588
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Rieger, Jörg
- University of Heidelberg, Department of Economics
Entstanden
- 2014
Ähnliche Objekte (12)
Financial Integration with Heterogeneous Beliefs
How heterogeneous beliefs trigger financial crises
Collective Risk-Taking Decisions with Heterogeneous Beliefs
Controlling chaos in a model with heterogeneous beliefs
Controlling chaos in a model with heterogeneous beliefs
Asset pricing with climate risks and heterogeneous beliefs
Heterogeneous patterns of financial development: Implications for Asian financial integration
Optimal Monetary Policy Under Heterogeneous Beliefs
Optimal monetary policy under heterogeneous beliefs
Financial Transaction Tax and Financial Market Stability with Diverse Beliefs
Financial Transaction Tax and Financial Market Stability with Diverse Beliefs
Interest spreads and margins in collateral equilibrium with heterogeneous beliefs
Financial Integration with Heterogeneous Beliefs
How heterogeneous beliefs trigger financial crises
Collective Risk-Taking Decisions with Heterogeneous Beliefs
Controlling chaos in a model with heterogeneous beliefs
Controlling chaos in a model with heterogeneous beliefs
Asset pricing with climate risks and heterogeneous beliefs
Heterogeneous patterns of financial development: Implications for Asian financial integration
Optimal Monetary Policy Under Heterogeneous Beliefs
Optimal monetary policy under heterogeneous beliefs
Financial Transaction Tax and Financial Market Stability with Diverse Beliefs
Financial Transaction Tax and Financial Market Stability with Diverse Beliefs
Interest spreads and margins in collateral equilibrium with heterogeneous beliefs
Financial Integration with Heterogeneous Beliefs
How heterogeneous beliefs trigger financial crises
Collective Risk-Taking Decisions with Heterogeneous Beliefs
Controlling chaos in a model with heterogeneous beliefs
Controlling chaos in a model with heterogeneous beliefs
Asset pricing with climate risks and heterogeneous beliefs
Heterogeneous patterns of financial development: Implications for Asian financial integration
Optimal Monetary Policy Under Heterogeneous Beliefs
Optimal monetary policy under heterogeneous beliefs
Financial Transaction Tax and Financial Market Stability with Diverse Beliefs
Financial Transaction Tax and Financial Market Stability with Diverse Beliefs