benchmark calibration, we estimate that the capital misallocation induced by these barriers reduces World GDP by 7%, compared to …-country inequality: the standard deviation of log capital per employee is 80% higher than it would be in a world without barriers to …

We examine the impact of the last five decades of financial globalization on world GDP and income distribution, using a … pattern Unbalanced Financial Globalization. We then simulate a counterfactual trajectory of the world economy where the RKO … capital allocation, a 2.8% lower world GDP, a 12% rise in the cross-country dispersion of GDP per capita, lower wages in …

the well established link between asset returns and the cyclical correlation between countries in standard CCAPM models …, our model links asset flows to the cyclical correlation. In particular, the model predicts that a country that has a low … correlation with the global cycle should see net capital inflows. We provide strong empirical evidence in support of this link and …