search query: @indexterm international capital market / total: 53
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| Author: | Bayoumi, T. Macdonald, R. |
| Title: | Consumption, income, and international capital market integration |
| Journal: | Staff Papers
1995 : JUL, VOL. 42:3, p. 552-576 |
| Index terms: | CONSUMPTION INTERNATIONAL CAPITAL MARKET MANAGEMENT |
| Language: | eng |
| Abstract: | This paper uses consumption patterns across countries to measure capital market integration. It argues that earlier empirical tests of this type were potentially misspecified and proposes a more robust specification. The results indicate that Japan was the only industrialized country for which national consumption was fully integrated with the rest of the world over the period 1973-92. The main source of failure is excess sensitivity of consumption to home income. Particularly within the European Community, however, there is also evidence that real interest rates are not equalized. |
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