We show that including distribution costs into a general equilibrium model of international portfolio choice contributes to explaining the 'home bias' in international equity investment. Our model is able to replicate observed investment positions for a wide range of parameter values, even if...

How does international financial integration affect national price levels? Panel evidence for 54 industrialized and emerging countries shows that a larger ratio of foreign assets and liabilities to GDP, our measure of international financial integration, increases the national price level under...

Die zunehmende Kapitalmobilität in Industrie- und Schwellenländern führt zu einer wachsenden Finanzmarktintegration und ermöglicht es Volkswirtschaften, sich im Ausland zu verschulden oder Investitionen in den produktivsten Regionen der Welt zu tätigen. Dieser Austausch von Finanzanlagen...

Die vorliegende Studie untersucht die empirische Regelmäßigkeit, dass Faktorpreise, insbesondere Lohnniveaus, sich im Länderquerschnitt nicht anpassen. Die Studie bietet einen möglichen Erklärungsansatz: Ein allgemeines stochastisches Gleichgewichtsmodell mit monopolistischer Konkurrenz auf...

Diese Studie untersucht die formale Aussage, dass in kleinen offenen Volkswirtschaften flexible Wechselkurse eine 'sckockabsorbierende Wirkung' entfalten und exogene Störungen effektiver als feste Wechselkurse mildern. Ein intertemporales Modell mit nominalen Rigiditäten zeigt die...

The real exchange rate - real interest rate (RERI) relationship is central to most open economy macroeconomic models. However, empirical support for the relationship, especially when cointegrationbased methods are used, is rather weak. In this paper we reinvestigate the RERI relationship using...

This paper provides an explanation for the observed decline of the exchange rate pass-through into import prices by modeling the effects of financial market integration on the optimal choice of the pricing currency in the context of rigid nominal goods prices. Contrary to previous literature, we...

U.S. state-level banking deregulation during the 1980's mitigated the impact of the China trade shock (CTS) on local economies (states and commuting zones) a decade later, in the 1990s. Local economies, where local banking markets opened up earlier, were also effectively financially more...

U.S. state-level banking deregulation during the 1980's mitigated the impact of the China trade shock (CTS) on local economies (states and commuting zones) a decade later, in the 1990s. Local economies, where local banking markets opened up earlier, were also effectively financially more...

U.S. state-level banking deregulation during the 1980’s mitigated the impact of the China trade shock (CTS) on local economies (states and commuting zones) a decade later, in the 1990s. Local economies, where local banking markets opened up earlier, were also effectively financially more...