Risk sharing in currency unions: The migration channel

B-Tier
Journal: European Economic Review
Year: 2023
Volume: 158
Issue: C

Authors (3)

Kohler, Wilhelm (not in RePEc) Müller, Gernot J. (Eberhard-Karls-Universität Tüb...) Wellmann, Susanne (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

International risk sharing insulates consumption from country-specific business-cycle fluctuations. This matters for countries in currency unions who lack monetary autonomy. In the spirit of Mundell (1961), we formally integrate migration as a distinct channel into the standard framework used to quantify risk sharing. For the US we find that interstate migration absorbs about 10 percent of the fluctuations in state-level output, for the euro area the corresponding number is 5 percent, consistent with the fact that migration rates are about 15 times higher in the US. The overall amount of risk sharing in the US is approximately three times as high.

Technical Details

RePEc Handle
repec:eee:eecrev:v:158:y:2023:i:c:s001429212300168x
Journal Field
General
Author Count
3
Added to Database
2026-01-26