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Seoul Journal of Economics - Vol. 33 , No. 1
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Seoul Journal of Economics - Vol. 33, No. 1, pp. 73-97
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 29 Feb 2020
Received 25 Jan 2020 Revised 05 Feb 2020 Accepted 05 Feb 2020

Consumption Risk Sharing in ASEAN: A Comparison of the ASEAN+3, East Asia, the OECD, and the Eurozone
Joongsan Ko
Joongsan Ko, Doctoral Candidate, Department of Economics, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul, Republic of Korea., Tel: +82-2-880-6359 (joongsan@snu.ac.kr)


Copyright Ⓒ 2020

JEL Classification: F02, F15, F36, F41

Abstract

On the basis of regression of consumption on output, we develop a new approach to identify a structural break in business cycles. Using this approach, we find that a structural change in the trend and cycle in Korea occurred in 1993 and that the business cycles in Korea started to show the regularities of emerging market business cycles beginning in 1993. To explain these, we estimate the parameters of the productivity process in Korea, using data on Solow residuals. Our estimates show that the relative importance of trend growth shocks in the post-break period increased by a factor of 2.56 from that in the pre-break period.

Keywords: ASEAN, Eurozone, Common currency, Consumption risk sharing, Financial integration
Acknowledgments

I thank anonymous referees for the helpful comments and suggestions.

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