The literature has shown that the implied welfare gains from international financial integration are very small. We revisit the existing findings and document that welfare gains can be substantial if capital goods are not perfect substitutes. We use a model of optimal savings that includes a...

The literature has shown that the implied welfare gains from international financial integration are very small. We revisit the existing findings and document that welfare gains can be substantial if capital goods are not perfect substitutes. We use a model of optimal savings that includes a...

The literature has shown that the implied welfare gains from financial integration are very small. We revisit these findings and document that welfare gains are substantial if capital goods are not perfect substitutes. We use a model of optimal savings where the elasticity of substitution...

We document several new facts regarding urbanization and structural change in developing countries and develop a model that can account for them. Most developing countries follow a standard pattern: urbanization is a by-product of either "push" from agricultural productivity growth or a "pull"...

The historical pattern of the demographic transition suggests that fertility declines follow mortality declines, followed by a rise in human capital accumulation and economic growth. The HIV/AIDS epidemic threatens to reverse this path. A recent paper by Young (2005), however, suggests that...

We study how the 2007--2009 crisis has changed the impact of financial integration on the transmission of international business cycles, focusing on a sample of 20 developed countries between 1978 and 2009. We find that while increases in financial linkages were associated with more divergent...

capital flows.

output volatility at micro and macro levels. Using a very large firm-level dataset (AMADEUS) from 16 European countries, we construct a measure of "deep" financial integration at the regional-level based on observations of foreign ownership at the firm-level. We find a significant positive...

We examine the role of dierent explanations for the lack of flows of capital from rich to poor countries−the Lucas paradox−in an empirical framework. Broadly speaking, the theoretical explanations for this paradox include dierences in fundamentals aecting the production structure...

The empirical evidence is such that countries with better developed financial markets gain significantly from FDI. This paper formalizes the mechanism through which the trickle down effect of FDI depends on the extent of the development of the domestic financial sector. We model a small open...