Fazio, Giorgio; MacDonald, Ronald; Melitz, Jacques - Department of Economics, Adam Smith Business School - 2007
; home bias puzzle; current
account; trade balance.
JEL Classifications: F10, F32
1. DSEAF, Universita' degli Studi di …, any shift in a country’s trade balance requires
some movement in the weight of its import prices relative to prices of … budget constraint. For example, in
the current period, a country with a large negative trade balance will face a higher …