Integrating out natural disaster shocks

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Bibliographic Details
Authors and Corporations:	Bremus, Franziska (Author), Rieth, Malte (Author)
Other Authors:	Rieth, Malte [Author]
Type of Resource:	E-Book
Language:	English
published:	Berlin DIW Berlin, German Institute for Economic Research 2023
Series:	Deutsches Institut für Wirtschaftsforschung: Discussion papers ; 2063
Subjects:	Financial integration natural disasters international risk sharing dynamic panel model emerging markets Graue Literatur
Source:	Verbunddaten SWB Lizenzfreie Online-Ressourcen

Description
Summary:	We study the role of international financial integration in buffering natural disaster shocks, using a large sample of advanced and emerging economies. Conditioning on such exogenous events addresses the endogeneity between financial structures and economic conditions. We document that integration improves shock absorption: output, consumption, and investment are significantly higher after a shock in states of high integration than in states of low integration. However, the benefits of international risk sharing mostly come to advanced economies. Emerging markets only profit from more integration if they have good institutions or high debt assets, whereas higher debt liabilities weaken the recovery.
Physical Description:	1 Online-Ressource (circa 67 Seiten); Illustrationen