From the abstract: "We study the effect of collateralized lending and securitization on international capital flows, growth, and welfare in a two country general equilibrium model. We find that capital flows from the high- to low-margin country, leading to high investment levels and economic growth in the latter. Despite low growth, the high-margin country substantially gains in terms of welfare through better risk sharing opportunities. The ability to tranche asset-backed securities in one country leads to offsetting portfolio flows, creating gross financial flows. Exogenous fluctuations in collateral requirements and the introduction of tranching have important implications for both net and gross international flows."
Employment Opportunities and Internships:
Research Assistant - Resources for the Future RFF is a nonprofit and nonpartisan organization that conducts independent research rooted primarily in economics on environmental, energy, natural resource and environmental health issues. They have openings for several one-year (renewable for a second year) RA positions in Washington, DC. To ensure consideration, please apply by March 15. Expected starting dates are flexible throughout summer 2015. For more information, please visit their website. Multiple Summer Internships - Lever, Inc. Based in North Adams, Lever, Inc. has multiple openings for the following paid positions: