Eichengreen, Barry; Chițu, Livia; Mehl, Arnaud J. - National Bureau of Economic Research (NBER) - 2013
We analyze patterns of bilateral financial investment using data on US investors' holdings of foreign bonds. We document a "history effect" in which the pattern of holdings seven decades ago continues to influence holdings today. 10 to 15% of the cross-country variation in US investors' foreign...