This paper studies the marginal product of private capital (MPK) with new data and a new framework to obtain a better understanding of international capital allocations and the Lucas Paradox (LP). Our point of departure is three influential studies of MPK's and, based on the most recently...

We quantify the impact of barriers to international investment, using a novel multi-country dynamic general equilibrium model with heterogeneous investors and imperfect capital mobility. Our model yields a gravity equation for bilateral foreign asset positions. We estimate this gravity equation...

This paper studies the marginal product of private capital (MPK) with new data and a new framework to obtain a better understanding of international capital allocations and the Lucas Paradox (LP). Our point of departure is three influential studies of MPK's and, based on the most recently...

National borders substantially matter in passenger air traffic. Empirical estimates based upon a new data set on domestic and international departures from German airports indicate that the German border reduces air traffic activity by a factor of four to five. This result adds a further piece...

From 1990 to 2010, free trade helped a billion people lift themselves out of extreme poverty. But the pace of liberalisation has since slowed and protectionism is back in fashion. Fortunately, Brexit provides a golden opportunity for the UK to become a global champion of free trade again. This...

This paper investigates how external sector-level financial shocks are transmitted to a small open economy through international production networks. Using a multi-sector two-country model with asymmetric country size, I show analytically that a financial shock to the large country's production...

A salient feature of the current globalization is a loss of manufacturing in developed countries and rapid industrialization in middle-sized developing countries. This paper aims to construct a simple three-country trade and geography model with different market sizes and endogenous wage rates....

The worldwide trend towards privatisation, liberalisation and globalisation has produced substantial economic benefits. Nevertheless, liberalisation has had its shortcomings and there are potential threats to further progress, including in particular an anti-liberalisation backlash. Continuing...

What are the dynamic consequences of comprehensive integration shocks? The answer to this question appears all but trivial. We set up a dynamic macroeconomic model of a small open economy where both capital and labor are mobile and there are increasing returns to scale at the aggregate level....

This paper critically assesses the literature on the relationship between economic integration and the environment. In particular, we investigate how trade liberalization and capital market integration affect environmental policy and thus environmental quality. Conversely, we also study how...