#2007-030A "Managing International Portfolios with Small Capitalization Stocks"
by Massimo Guidolin, and Giovanna Nicodano
August 2007

In the context of an international portfolio diversification problem, we find that small capitalization equity portfolios become riskier in bear markets, i.e. display negative co-skewness with other stock indices and high co-kurtosis. Because of this feature, a power utility investor ought to hold a well-diversified portfolio, despite the high risk premium and Sharpe ratios offered by small capitalization stocks. More...

#2007-028A "Do Donors Care about Declining Trade Revenues from Liberalization? An Analysis of Aid Allocation"
by Javed Younas, and Subhayu Bandyopadhyay
July 2007

Many developing country governments rely heavily on trade tax revenue. Therefore, trade liberalization can be a potential source of significant fiscal instability, and may affect government spending on development activities. More...

#2007-024A "Trade and Child Labor: A General Equilibrium Analysis"
by Subhayu Bandyopadhyay, and Sudeshna C. Bandyopadhyay
May 2007

This paper augments the existing literature on trade and child labor by exploring the effects of terms of trade changes in the context of a three good general equilibrium model, where one of the goods is a non-traded good. More...

FORTHCOMING: Emerging Markets Finance and Trade

#2007-023A "Foreign Aid and Export Performance: A Panel Data Analysis of Developing Countries"
by Jonathan Munemo, Subhayu Bandyopadhyay, and Arabinda Basistha
May 2007

The effect of foreign aid on economic activity of a country can be dampened due to potentially adverse effects on exports through a real exchange rate appreciation. More...

PUBLISHED: in Sajal Lahiri ed. “Theory and Practice of Foreign Aid”, Elsevier, May 2007, pp. 421-33

#2007-022A "Corruption and Trade Protection: Evidence from Panel Data"
by Subhayu Bandyopadhyay, and Suryadipta Roy
May 2007

This paper provides new estimates of the effects of corruption and poor institutions on trade protection. It exploits data on several measures of trade protection including import duty, international trade taxes, and the trade-GDP ratio. More...

PUBLISHED: International Journal of Economic Research, 2007, 4(2), pp. 124-34

#2007-021A "Nash Equilibrium Tariffs and Illegal Immigration: An Analysis of Preferential Trade Liberalization"
by Subhayu Bandyopadhyay, and Ryo Takashima
May 2007

We use a version of the small-union Meade model to consider the effects of interdependent import tariffs in the presence illegal immigration. More...

FORTHCOMING: International Economics and Finance Journal

#2007-014A "Resolving the Unbiasedness and Forward Premium Puzzles"
by Daniel L. Thornton
March 2007

There are two unresolved puzzles in the empirical foreign exchange literature. More...

#2007-011A "Handicapping Currency Design: Counterfeit Deterrence and Visual Accessibility in the United States and Abroad"
by Marcela M. Williams, and Richard G. Anderson
March 2007
Revised June 2007

Despite the increasing use of electronic payments, currency retains an important role in the payment system of every country. In this article, the authors compare and contrast tradeoffs among currency design features, including those primarily intended to deter counterfeiting and ones to improve usability by the visually impaired. More...

PUBLISHED: Federal Reserve Bank of St. Louis Review, September/October 2007, 89(5), pp. 371-414

#2007-004A "The Perils of Globalization: Offshoring and Economic Insecurity of the American Worker"
by Richard G. Anderson, and Charles S. Gascon
February 2007

According to polls from the 2006 congressional elections, globalization and economic insecurity were the primary concerns of many voters. More...

#2006-062B "Is There Too Little Immigration? An Analysis of Temporary Skilled Migration"
by Subhayu Bandyopadhyay, and Howard J. Wall
December 2006
Revised August 2007

This paper presents a model of legal migration of temporary skilled workers from one source country to two host countries, both of which can control their levels of such immigration. More...

PUBLISHED: Journal of International Trade and Economic Development, June 2008, 17(2), pp. 197-211