One of the explanations for global imbalances is the self-financing behavior of credit-constrained firms in rapidly growing emerging markets. We use an extensive firm-level data set from several Asian countries during 2002-2011, and test the micro foundation of this theory by estimating the...

I model and quantify the impact of a new dimension of global integration: offshore R&D. In the model, firms match with heterogeneous researchers to develop new product blueprints, and then engage in offshore production and exporting. Cross-country differences in the distributions of firm...

The impact of shocks in dynamic environments depends on how forward-looking agents anticipate the path of future fundamentals that shape their decisions. We incorporate flexible beliefs about future fundamentals in a general class of dynamic spatial models, allowing beliefs to be evolving,...