This paper tests a novel explanation for excess returns to the carry trade, namely, that investors are rewarded for exposure to equity risk of the target country. This risk factor is motivated via a hedging argument, whereby investors reallocate portfolio holdings to government debt in response...

This paper tests the importance of international financial assets and liabilities for consumption risk sharing in a general framework which allows for separate effects of equity and debt holdings as well as country-specific sensitivity to aggregate risk. Integration into both the international...

Monetary policy loosening and the associated impact on credit availability may have played a role in the present financial crisis. If such liquidity risk exists and is undiversifiable, then loose monetary policy should be associated with a risk premium. This paper tests for the existence of such...

This study investigates the development of Korea’s foreign bond (Arirang) market for won-denominated foreign bonds. We provide an institutional perspective and discuss the problems, concerns and key issues related to the development of this market. We find no evidence that Arirang issuance...

Ugandan data shows poverty to be entrenched in rural areas and in large households. Households with heads exposed to education, an improved health status, less reliance on agriculture as the most important source of earnings, access to electricity for lighting and, the presence of markets to...

This paper analyzes welfare-state determinants of individual attitudes towards immigrants within and across countries and their interaction with labor-market drivers of preferences. We consider two different mechanisms through which a redistributive welfare system might adjust as a result of...