Macroeconomics: Why does capital flow from equal to unequal countries?
Published: 8 March 2022
17 March. Dr Federica Romei, University of Oxford
Dr Federica Romei, University of Oxford
'Why does capital flow from equal to unequal countries?' (co-authored by S. de Ferra & K. Mitman)
Thursday 17 March, 3pm - 4.30pm
Room 206, Gilbert Scott Building (Main Building)
Register at business-events@glasgow.ac.uk
Abstract
Capital flows from equal to unequal countries. We document this empirical regularity in a large sample of advanced economies. The capital flows are largely driven by private savings. We propose a theory that can rationalise these findings: more unequal countries endogenously develop deeper financial markets. Households in unequal counties, in turn, borrow more, driving the observed direction of capital flows.
Biography
Federica gained her PhD in Economics from LUISS Guido Carli in 2014 and subsequently she was a Max Weber/Jean Monnet fellow at the European University Institute. In September 2015 she joined the Department of Economics at the Stockholm School of Economics as Assistant Professor. In 2016, she became Research Affiliate at the Center for Economic Policy Research. Between 2017 and 2018 she was a Visiting Scholar at the Banco de España. In September 2020 she joined the University of Oxford, where she is a Tutorial Fellow at Hertford College and Associate Professor in Economics at the Department of Economics.
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First published: 8 March 2022
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