Why do financial markets see so little risk, while companies that invest in the real economy appear to be much more …

's vulnerability to periods of heightened risk and uncertainty. This paper develops a framework to evaluate such vulnerabilities. It … and explore how they are affected by domestic and global risk. We apply this framework to ten OECD economies, showing the … Kingdom, show that a substantial degree of international risk sharing can occur through current accounts and international …

"The paper tests three hypotheses concerning foreign equity investment in the presence of liquidity risk. First, the … FDI-to-FPI price differential is negatively related to liquidity risk (the "Price Discount Hypothesis"). The idea is that …