Barriers to Global Capital Allocation
构建了一个多国动态空间一般均衡模型，利用近100个国家的数据衡量国际投资障碍，发现这些障碍使全球产出降低7%，并加剧了各国人均资本的差异，从而加剧全球不平等。
ABSTRACT Observed international investment positions and cross-country heterogeneity in rates of return to capital are hard to reconcile with frictionless capital markets. This article develops a theory of international capital allocation: a multi-country dynamic spatial general equilibrium model in which the entire network of cross-border investment is endogenously determined. Our model features cross-country heterogeneity in fundamental risk, a demand system for international assets, and frictions that cause segmentation in international capital markets. We measure frictions affecting international investment and apply our model to data from nearly 100 countries, using a new dataset of international capital taxes and cultural, linguistic, and geographic distances between countries (geopoliticaldistance.org). Our model performs well in reproducing the composition of international portfolios, the cross section of home bias and rates of return to capital, and other key features of international capital markets. Finally, we carry out counterfactual exercises: we show that barriers to international investment reduce world output by 7% and raise the cross-country dispersion of capital per employee, contributing in a meaningful way to global inequality.