It is now well documented that capital flight has been a dominant feature of capital movements between developing and industrial countries. Since 1988 reductions in the stock of flight capital more than account for private capital flows to emerging markets. This suggests that what appears to be...

It is now well documented that capital flight has been a dominant feature of capital movements between developing and industrial countries. Since 1988 reductions in the stock of flight capital more than account for private capital flows to emerging markets. This suggests that what appears to be...

Building on insights from the economics of superstars, I develop an efficient method for estimating the skill of mutual fund managers. “Outliers” are helpful for distinguishing skill from luck in this framework — informative rather than spurious. Forecasted performance is dramatically...