We survey the literature on global capital allocation. We begin by reviewing the rise of cross-
border investment, the shift toward portfolio investment, and the literature focusing on …

We establish currency as an important factor sha** global portfolios. Using a new security-
level data set, we demonstrate that investor holdings are biased toward their own currencies …

We study a business cycle model of the international monetary system featuring a time-
varying demand for safe dollar bonds, greater risk-bearing capacity in the United States than …

Home bias is a perennial feature of international capital markets. We review various
explanations of this puzzling phenomenon highlighting recent developments in …

The surge in international asset trade since the early 1990s has lead to renewed interest in
models with international portfolio choice. We develop the implications of portfolio choice for …

We document lead-lag effects on returns between coheadquartered firms in different sectors.
Geographic lead-lags yield risk-adjusted returns of 5%–6% annually, half that observed for …

The past decade has witnessed an explosion of papers estimating gravity equations for
cross-border financial holdings without much of a theoretical foundation. In this paper we …

We assess the pattern of Euro Area financial integration adjusting for the role of “onshore
offshore financial centers”(OOFCs) within the Euro Area. The OOFCs of Luxembourg …

Monetary and financial policies that lower the cost of credit for working capital in a currency
outside of its country can provide the impetus for that currency to be used in international …

International capital flows have increased dramatically since the 1980s, with much of the
increase being due to trade in equity and bond markets. Such developments are often …