A Note on Consumption Correlations and European Financial Integration
Data
01.01.2002
01.01.2002
Autori
D. Teja Flotho
Codice JEL
E32,F41
E32,F41
Parole chiave:
Consumption correlations,European financial integration,financial
Consumption correlations,European financial integration,financial
Publisher
Economy and Society
Economy and Society
Editor
Fausto Panunzi
Fausto Panunzi
In this paper we use empirical cross-country correlation coefficients of GDP- and private consumption data as a measure of financial integration between the current EU-member states and the central and eastern European accession states. We find, that the so-called consumption correlation puzzle with high output correlations and considerably small(er) consumption correlations (just opposite to the theory of complete financial markets) does also and still exist among European countries, even using data-sets covering most recent time periods. Thus, there seems to be less financial market integration than often expected.