Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Using a simple theoretical model, I suggest that the nominal revaluation of cross‐border assets (the international wealth redistribution through the changes in nominal variables) may work as an international risk‐sharing mechanism at the aggregate level. Then, I empirically examine three risk‐sharing channels: the nominal revaluation of cross‐border assets, the terms‐of‐trade channel suggested by Cole and Obstfeld (1991), and cross‐border security ownership (international portfolio diversification). Empirical results suggest that the nominal revaluation hedges country‐specific consumption risks at the aggregate level but that the other two channels do not. The results have interesting implications on international risk‐sharing and exchange rate regime comparison.