This paper studies the famous Feldstein and Horioka finding, which is a high correla-tion between long period averages of savings rates and investment rates across countries. We first confirm the Feldstein-Horioka finding with a more recent data set, and then show that a calibrated complete...

This dissertation studies the roles that durable goods play in open economy macroeconomics. The three essays examine if and how durable goods improve the ability to understand business cycle features.The first essay shows how investment behavior and international risk sharing, two business cycle...

Firms and investors often operate in environments with market imperfections and agency frictions. It is common wisdom that the effects of these microeconomic frictions are amplifed or mitigated by the quality of economic institutions in a country. Yet little is known about the precise channels...

This thesis seeks to develop an alternative conceptual framework through which to understand international finance. It then applies this framework to the case of China’s recent official foreign exchange accumulation. One view of international financial relations suggests an agendaof...

My dissertation consists of three essays on international capital flows. In the first essay, titled "Do small firms benefit more from foreign portfolio investment? Evidence from a Natural Experiment," I test whether an increase in the supply of foreign portfolio capital benefits small firms by...

In this dissertation, I further explore the role of the entrepreneurial sector in creating frictions in the economy. I examine the combined effect of private information and entrepreneurial risk aversion on the dynamics of a general equilibrium macroeconomic model. I analyze the impact of these...

This dissertation studies two issues in empirical analysis of financial markets: The herd behavior in global markets and illiquidity as a risk factor to predict excess stock returns in international markets. These issues are structured into two essays.Essay #1 examines investors’ herding...

This thesis analyzes the nature of foreign equity trades in relation to their effectson local markets. My goal is to contribute to the understanding of equity flows of foreign investors and their effect on the local markets. The thesis consists of twochapters, both of which employ a novel data...

This paper investigates the impact of European Union membership on Baltic investors' ability to diversify. The research addresses the impact of E.U. membership on effectiveness of country-based diversificatin versus industry-based diversification strategies for Latvian investors. I compared...

This paper will attempt to provide a comprehensive review and introduce the concept of international financial integration. In addition, it provides a review on the available indicators used as proxies for international financial integration in empirical studies. It also proposes a more detailed...