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 …

In the context of the European crisis, we show that the security portfolio of banks plays an
important role in the propagation of financial shocks across countries. Using Italian loan …

Banks in emerging market economies rely on cross-border interbank lending to financing
firms in the real sector. By matching cross-border bank-to-bank loan level data with domestic …

We analyze how capital flows into the sovereign debt market affect government bond prices,
liquidity, and exchange rates. To address endogeneity concerns, we construct a measure of …

We provide novel empirical evidence on the effects of cross-border bank lending on
emerging market economies'(EMEs) macro-financial conditions. We identify causal effects …

Local government expenditures are increasingly financed by debt, mostly consisting of bank
loans. I study the crowding out effect of these loans on corporate credit, investment …

We study the effects of sovereign debt inflows on domestic firms. To do so, we exploit
episodes of large sovereign debt inflows, which follow the announcements of the inclusion …

Assessing the composition of sovereign debt holders is important because investors'
behavior varies according to distinctive components, including shareholders' preferences …

We study how changes in the composition of Chinese local government debt influenced
bank risk taking, credit allocation, and local productivity. Using confidential loan-level data …

We explore how anti-money laundering (AML) policies affect banks and credit provision to
firms. For identification we exploit the enactment of a financial regulation in Colombia. Aimed …