Financial integration and consumption comovements in the Nordic countriesEuropean Review of Economics and Finance (2004)
AbstractThe cross-country correlations between annual per capita consumption growth in the Nordic countries during the period 1973-2000 are much lower than predicted by the basic theoretical models of international financial integration. Relaxing the assumption of forward-looking consumption behavior underlying these models, this paper sheds light on this observation. We find some evidence of myopic consumption behavior in Denmark, Finland and Sweden. Taking this into account, the financial markets of the Nordic economies seem to be fairly well integrated.
- International financial integration,
- capital mobility
Citation InformationEgil Matsen and Øystein Thøgersen. "Financial integration and consumption comovements in the Nordic countries" European Review of Economics and Finance Vol. 3 Iss. 2 (2004)
Available at: http://works.bepress.com/egil_matsen/7/