In this paper, we use a unique long-run dataset of regulatory constraints on capital account openness to explain stock market correlations. Since stock returns themselves are highly volatile, any examination of what drives correlations needs to focus on long runs of data. This is particularly...

Using a new dataset on capital account openness, we investigate why equity return correlations changed over the last century. Using equity returns from 16 countries for the period 1890-2001, we show that correlations increase as financial markets are liberalized. In addition, countries with...

We use the case of a puzzling decline in U.S. firm antidumping (AD) filings to explore how firm-level economic heterogeneity within U.S. industries influences political and regulatory responses to changes in the global economy. Firms exhibit heterogeneity both within and across industries...