International Diversification Of Social And Private Risk: The U.S. And Japan
Document Type
Article
Publication Date
10-1-1994
Published In
Japan And The World Economy
Abstract
This paper concerns the gains from international trade in risky assets, with an application to the United States and Japan. I examine the role of international financial markets in diversifying the risks associated with the aggregate consumption opportunities of a nation (social risk) and the risks related to individual agents' consumption opportunities (private risk). The main empirical result is that international portfolio diversification between the United States and Japan leads to small reductions in social risk but large reductions in some private risks, especially for corporate profits.
Recommended Citation
Stephen S. Golub.
(1994).
"International Diversification Of Social And Private Risk: The U.S. And Japan".
Japan And The World Economy.
Volume 6,
Issue 3.
263-284.
DOI: 10.1016/0922-1425(94)90015-9
https://works.swarthmore.edu/fac-economics/60