Harms, Philipp; Hoffmann, Mathias; Kohl, Miriam; … - In: Review of World Economics 160 (2023) 2, pp. 585-613
In this paper, we present empirical evidence that higher income inequality is associated with a greater equity share in countries’ external liabilities, and we develop a theoretical model that can explain this observation: In a small open economy with traded and non-traded goods, entry...