This paper explains three key stylized facts observed in industrialized countries: 1) portfolio holdings are biased towards local equity; 2) international portfolios are long in foreign currency assets and short in domestic currency; 3) the depreciation of a country's exchange rate is associated...

This paper analyzes the determinants of cross-border asset holdings on cross-country data and a Swedish data set. We focus our analysis on the effect of the euro not only for the determinants of bond holdings, but also of equity and banking assets. With the help of a simple theoretical model, we...

This paper analyses the effect of different types of regional subsidies to poor regions on industrial location, employment, income inequality - between and inside regions - and welfare. We show that the impact on location of such subsidies is stronger when trade costs are low. When firms are...

This paper analyzes the effect of different regional subsidies to poor regions on industrial location, employment, income inequality and welfare in the presence of agglomeration forces when firms are mobile. The impact on location of such subsidies is stronger when trade costs are low. With...

The papers in this special issue of Économie internationale/International Economics are a subset of selected papers presented at the XIII “Spring Meeting of Young Economists” (SMYE), which took place from April 17-19, 2008, at University of Lille2 (www.smye2008.com). Since 1996, the SMYE is...

The paper analyses the impact of economic integration on individual inequality and regional disparity in a model of endogenous growth and geography. Assuming localised learning externalities and perfect mobility of capital, trade integration of economies yields a trade-off for the policy maker...

This paper presents a simple framework in which the location and the growth rate of economic activities are endogenous and interact. We show that the nature of the equilibrium and of the relation between growth and location depends fundamentally on whether capital is assumed to be mobile (in...

In this paper we analyze the connection between Nash bargaining and non-cooperative bargaining, the so-called Nash program, to solve the question of whether outside options should be considered as a the disagreement point.

In this paper we analyze the connection between Nash bargaining and non-cooperative bargaining, the so-called Nash program, to solve the question of whether outside options should be considered as a the disagreement point.