Publications

There are different arguments in favor and against nominal and indexed debt which broadly include the incentive to default through inflation versus hedging against unforeseen shocks. We model these arguments and calibrate the model to assess the quantitative importance... View Details

Research Summary

Sovereign Debt as a Contingent Claim: A Quantitative Approach (joint with Fabio Kanczuk)

We construct a dynamic equilibrium model with contingent service and adverse selection to quantitatively study sovereign debt. In the model, benefits of defaulting are tempered by higher future interest rates. For a wide parameter, the only equilibrium is one in which... View Details

15 Jul 2010
Working Paper Summaries

Trade Policy and Firm Boundaries

Keywords: by Laura Alfaro, Paola Conconi, Harald Fadinger & Andrew F. Newman

20 Sep 2011
Working Paper Summaries

Sovereigns, Upstream Capital Flows and Global Imbalances

Keywords: by Laura Alfaro, Sebnem Kalemli-Ozcan & Vadym Volosovych

02 Jul 2015
Op-Ed

The Future of the Greek Economy

could go on as usual were out of sync with reality. Hopefully, cooler heads will prevail in the days ahead. — Laura Alfaro Laura Alfaro is the... View Details

Keywords: by Laura Alfaro, Dante Roscini & George Serafeim; Banking

16 Apr 2020
Research & Ideas

Has COVID-19 Broken the Global Value Chain?

manufactured by another firm elsewhere, and distributed by dealers everywhere—all underwritten by global cash flows. Often these networks are... View Details

Keywords: by Sean Silverthorne

27 Sep 2006
Working Paper Summaries

How Does Foreign Direct Investment Promote Economic Growth? Exploring the Effects of Financial Markets on Linkages

Keywords: by Laura Alfaro, Areendam Chanda, Sebnem Kalemli-Ozcan & Selin Sayek

17 Nov 2003
Research & Ideas

Lessons from a Nasty Trade Dispute

seems likely that Brazil will work with Canada to arrive at mutually agreeable financing packages to be used by each country. HBS professors Rawi Abdelal and Laura View Details

Keywords: by Cynthia Churchwell

Comment

Comment on 'Integration, Interdependence and Regional Goods' by A. Bevilaqua, M. Catena and E. Talvi

December 2005
Comment

Review of "The Monetary Geography of Africa," by Paul R. Masson and Catherine Patillo

2018
Book Review

Book Review of Israel and the World Economy: The Power of Globalization, by Assaf Razin

March 2009
Book Review

Review of 'Foreign Direct Investment: Analysis of Aggregate Flows' by A. Razin and E. Sadka

12 Dec 2023
Research & Ideas

COVID Tested Global Supply Chains. Here’s How They’ve Adapted

global supply chain stood up under intense pressure as federal monetary policy and pandemic relief programs stoked a huge surge in consumer demand. “The global supply chains actually helped us during COVID-19,” View Details

Keywords: by Scott Van Voorhis

16 Oct 2018
First Look

New Research and Ideas, October 16, 2018

input more valuable. Distributed supermodular complementarity (DSMC) exists when two or more independent actors can create complementary value by pursuing their own interests and will not find it... View Details

Keywords: Dina Gerdeman

23 Jan 2018
First Look

First Look at New Research and Ideas, January 23, 2018

examines investments made by 13 angel groups across 21 countries. We compare applicants just above and below the funding cutoff and find that these angel investors have a... View Details

Keywords: Sean Silverthorne

2007
Comment

Comments on "How to Investigate the Impact of Foreign Direct Investment on Development, and Use the Results to Guide Policy," by Theodore H. Moran

May 2018
Article

Selection and Market Reallocation: Productivity Gains from Multinational Production

By: Laura Alfaro and Maggie X. Chen

Assessing the productivity gains from multinational production has been a vital topic of economic research and policy debate. Positive aggregate productivity gains are often attributed to within-firm productivity improvement; however, an alternative, less emphasized... View Details

Keywords: Productivity Gains; Multinational Production; Selection; Market Reallocation; And Within-firm Productivity; Multinational Firms and Management; Production; Performance Productivity; Competition; Mathematical Methods

Read Now

June 2019
Article

Debt Redemption and Reserve Accumulation

By: Laura Alfaro and Fabio Kanczuk

In the past decade, foreign participation in local-currency bond markets in emerging countries increased dramatically. We revisit sovereign debt sustainability under the assumptions that countries can accumulate reserves and borrow internationally using their own... View Details

Keywords: Sovereign Debt; Local-currency Bonds; Foreign Reserves; Sovereign Finance; Borrowing and Debt; Bonds; Financial Markets; Developing Countries and Economies