Risk sharing in Russia

Russia is one of the largest and most heterogeneous emerging markets. It is comprised of more than 80 highly different regions (oblast). Moreover, the Russian economy is dependent on the performance of a few key industries, which makes it susceptible to macroeconomic instabilities. For developed economies, previous literature documented an automatic but only a partial mechanism of adjustment to industrial, regional and even national wide shocks, which is reported as consumption risk sharing, but nearly no evidence was documented for Russia and other emerging markets. We apply novel estimation methods (dynamic panel models and spatial models) which are compared with fixed effect models as used in the previous literature. Our results show that approximately 80 to 90 percent of consumption risk is shared across Russian regions, which is a substantially larger fraction compared to regional risk sharing studies for developed countries.

Projektbeginn: 01.01.2017
Projektende: 01.01.2020

Prof. Dr. Jarko Fidrmuc, MA Moritz Degler

Zeppelin University Friedrichshafen
Zeppelin-Lehrstuhl für Internationale Wirtschaftstheorie & -politik (eingerichtet 05 / 2011)

Am Seemooser Horn 20
88045 Friedrichshafen

Telefon: +49 7541 6009-1241
Fax: +49 7541 6009-1299
Email: jarko.fidrmuc@zu.de
http://www.zeppelin-university.de/deutsch/lehrstuehle/internationales_management/internationales_management_profil.php