Two of the main puzzles in international economics are the consumption and the portfolio home biases. We solve for international equity portfolios in a two-country/two-good stochastic equilibrium model with trade costs in goods markets. We show that introducing trade costs, as suggested by...

This paper analyzes the determinants of cross-border asset trade on cross-country data and a Swedish data set. We focus our analysis on the impact of the euro for the determinants of trade in bonds, equity and banking assets. With the help of a theoretical model, we disentangle the different...

How much risk sharing takes place between regions within countries, between countries internationally, and what are the lessons for EMU? We study these questions based on regional data from the US, Canada, the UK and Italy, and national data from an international sample of 23 OECD countries,...

This paper explains three key stylized facts observed in industrialized countries: 1) portfolio holdings are biased towards local equity; 2) international portfolios are long in foreign currency assets and short in domestic currency; 3) the depreciation of a country's exchange rate is associated...

Recent models of international equity portfolios exhibit two potential weaknesses. First, the structure of equilibrium equity portfolios is determined by the correlation of equity returns with real exchange rates and non financial income; yet empirically domestic equities don’t appear to be a...

L’évolution des productions des industries de haute technologie montre un écart croissant, à partir de la seconde moitié des années 1990, entre la zone euro et les États-Unis, en faveur de ces derniers. En revanche, le niveau des exportations est quasiment identique actuellement. Le...

This paper analyses in what extent innovation contributes to the productivity premium of exporters. We start by performing non parametric tests on TFP distributions on different groups of firms characterized by their export and innovation behavior. We show that the TFP distributions of exporters...

This paper aims to analyse the nature of the gap in high tech industries between the United States and the EMU countries, and to investigate the link between cost competitiveness and market share in these industries. We examine the empirical evidence to ascertain whether some tentative...

We develop a simple model where exporting firms are characterized by het- erogeneous productivity and may face a liquidity constraint, which in turn is affected by exchange rate changes. This setup is used to analyze exchange rate exposure, i.e. the sensitivity of profits to exchange rate...

This paper investigates the relation between export behaviour and the exchange rate at firm level. We use a dataset of French manufacturing firms from 1994 to 2004, to study the sensitivity of firms' export intensity and probability of entering a foreign market, to the exchange rate. This large...