This paper examines the well-known equity home bias puzzle in international macroeconomics by exploiting the cross-sector variation. Combining unique financial datasets, I introduce a novel sectoral home bias index that covers 27 industries in 43 countries, which enables empirical and...

This paper examines how bilateral economic linkages shape consumption synchronization across economies. Using state-level data from the US, we find that the degree of bilateral consumption risk sharing decreases with geographic distance. To explain this novel fact, we develop an open economy...

This paper examines the well-known home bias puzzle in international finance by exploiting the cross-sector variation. Using unique financial datasets, I calculate a sectoral home bias index that covers 27 industries in 43 countries, which enables empirical and theoretical analysis of the puzzle...