Two major topics in recent rounds of international trade negotiations have been environmental concerns, and services trade. While each is undoubtedly important, they are unrelated. The service sector emits only a small part of overall pollution, and those service industries that do pollute do not trade internationally. This paper uses data on trade in services from the U.S. Bureau of Economic A...

The debt experience of the 1920s and 1930s was one of pervasive default. Half the outstanding Latin American debt was completely in default by 1949, and nearly half was serviced on an adjusted basis, having been written down as to principal and interest. Only a tiny 1.9 percent continued to be serviced on the tenns origmally contracted. By comparison, today's debt performance is dramatically su...

This study analyzes the impacts of free trade agreements (FTAs) on bilateral trade, focusing Japan’s FTAs. In particular, we examined both static and dynamic effects at aggregated disaggregated levels, using two datasets between 1995 2016 for Japanese only world trade. For analysis, investigated overall effect individual Regarding considered time since their enactment. Our results indicate that...

In the data country portfolios are heavily biased toward domestic assets. Standard onegood international macro models predict that, due to the presence of non-diversifiable labor income risk, country portfolios should be heavily biased toward foreign assets; this discrepancy constitutes the international diversification puzzle (Baxter and Jermann, 1997). We show that a simple extension of one-g...

This paper proposes a two-good, two-country general equilibrium model with external habits and home-biased preferences that addresses a number of international …nance puzzles. Speci…cally, the model reconciles the high degree of international risk sharing implied by relatively smooth exchange rates with the modest cross-country consumption growth correlations seen in the data, resolving the Bra...