Risk Sharing and Demand Deposit. An Empirical Note About Regional Interest Rates in Italy

Posted: 9 May 2004

See all articles by Paola Brighi

Paola Brighi

University of Bologna - Department of Management

Antonello E. Scorcu

University of Bologna - Department of Economics

Date Written: January 2004

Abstract

Even if the recent deregulation and disintermediation of financial markets have strongly reduced interest rates, some differences among Italian regional interest rates partially persist because of geographic and sector diversification. This could be one of the main reasons of the absence of risk sharing through Italian deposit and credit markets. We test three different types of risk sharing: the first one is a hypothesis of complete risk sharing that is easily refused; the second one is a hypothesis of partial temporary risk sharing that is accepted for most of the North regions; the last one, is a hypothesis of partial risk sharing over time and is accepted with different degrees of robustness for most of the remaining Italian regions.

JEL Classification: E21, G21

Suggested Citation

Brighi, Paola and Scorcu, Antonello, Risk Sharing and Demand Deposit. An Empirical Note About Regional Interest Rates in Italy (January 2004). Available at SSRN: https://ssrn.com/abstract=493382 or http://dx.doi.org/10.2139/ssrn.493382

Paola Brighi (Contact Author)

University of Bologna - Department of Management ( email )

Via Capo di Lucca 34
Bologna 40126
Italy

Antonello Scorcu

University of Bologna - Department of Economics ( email )

I-40126 Bologna
Italy

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