Fazio, Giorgio; MacDonald, Ronald; Melitz, Jacques - Department of Economics, Adam Smith Business School - 2007
Rogoff hypothesis and we are also able to reconcile our results with the so-called home bias puzzle. … our results with the so-called home bias puzzle.
Keywords: Feldstein-Horioka puzzle; trade costs; gravity model …; home bias puzzle; current
account; trade balance.
JEL Classifications: F10, F32
1. DSEAF, Universita' degli Studi di …