Pengaruh Penggabungan Mata Uang di Uni Eropa terhadap International Risk Sharing dan Home Bias

Triandhari, Risna
Safuan, Sugiharso

Jurnal Ekonomi dan Pembangunan Indonesia
Vol. 12, No. 2

Resident of the industrialized countries can lower some of their economic risk they face by diversifying their portfolios including foreign assets. In the world with perfect capital mobility, international risk sharing will reduce saving with constant relative risk aversion. The objective of this study to analyze the impact of the establishment of single currency on the degree of international risk sharing and the home bias among country member of European Union (EU). Using panel data, the increasing output correlation between individual countries and group of eleventh countries indicate the adoption of single currency increase the degree of international risk sharing.