2010 Fiscal Year Final Research Report
On the determination mechanism of bilateral flow of funds among countries
| Project/Area Number |
19530149
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Economic theory
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| Research Institution | Hitotsubashi University |
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Principal Investigator |
SAITO Makoto Hitotsubashi University, 大学院・経済学研究科, 教授 (10273426)
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| Project Period (FY) |
2007 – 2010
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| Keywords | 国際金融 / 不完備市場 / 国際資金循環 / リスク・シェアリング / 両建てポートフォリオ |
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| Research Abstract |
Employing several models of international finance, in particular some two-country models with incomplete markets, we have constructed a case where bilateral flow of funds emerges between two countries to share country-specific shocks, including catastrophic ones. One of the most important implications from our theoretical investigation is that expanding external balance sheets by holding large-scale long and short positions would help to improve risk-sharing among countries. In addition to the above research, we have investigated how catastrophic shocks including natural disaster and health deterioration may be shared among domestic agents using both theoretical and empirical methods.
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