We provide empirical evidence that stock market crises are spread globally through asset holdings of international investors. By separating emerging market stocks into two categories, those eligible for purchase by foreigners (accessible) and those that are not (inaccessible), we estimate and compare the degree to which accessible and inaccessible stock index returns co-move with the crisis country index returns. Our results show greater co-movement during high volatility periods, especially for ac-cessible stock index returns, suggesting that crisis spread through the asset holdings of international investors rather than through changes in fundamentals.

This paper attempts to better understand international waves in capital flows. We build on the literatures on “sudden stops ” and “bonanzas ” to develop a new methodology for identifying episodes of extreme movements in capital flows using quarterly data on gross inflows and gross outflows, disaggregated by the type of investor (foreign vs. domestic) and by the type of flow (banking, direct investment, equity and debt). We identify episodes of “surge”, “stop”, “flight ” and “retrenchment ” and show how our approach yields fundamentally different results on the identification of these episodes than in the previous literature that used more aggregate measures of net flows. Causes of these episodes include global factors (especially global risk and global growth), contagion, and domestic macroeconomic characteristics (especially related to the domestic financial system). We find little role for global interest rates, global liquidity and domestic growth. The results have important implications for discerning between different theoretical approaches aimed at explaining crises and surges in capital flows.

Abstract not found

on International Macro-Finance for extremely helpful comments and discussions. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of

helpful discussions and comments. This paper has benefited greatly from the financial support of the International Tax Policy Forum. We also thank Rene Offermanns of the International Bureau of Fiscal Documentation (IBFD) for his assistance in compiling our tax database. The Effects of the Taxation of Dividends on the Allocation of Foreign Portfolio Investment around the World This paper investigates the association between foreign equity portfolio investments and dividend tax policies around the world. We hypothesize that investors will allocate more of their foreign equity portfolios to countries that have favorable policies governing the taxation of dividend income. Consistent with our hypothesis, we find evidence that favorable tax policies on dividend income increase a country’s foreign portfolio investments. We also find that the effect of dividend taxation on foreign portfolio investments is stronger for countries that have higher dividend payouts. To examine our hypothesis, we utilize a new comprehensive database of worldwide tax information that allows us to estimate the tax burden on foreign dividend income, which can vary for each home-foreign country pairing. In additional analyses, we find evidence that investors allocate less of their foreign equity portfolios to countries with imputation systems that do not extend the benefits of imputation to foreign investors. This result is consistent with the European Court of Justice’s (ECJ) recent rulings that the imputation systems employed by many countries discriminate against foreign investors. Overall, we interpret our results as evidence that investors take into account dividend taxation when constructing their foreign equity portfolios

We examine a large number of potential home bias determinants, including some novel ones, using extensive panel data. We distinguish between the actual home bias (overinvestment in domestic securities) and foreign investment bias, for which we propose a new measure. For foreign investment bias, we also demonstrate how “size biases ” significantly affect the results. We find that the old empirical results based on the U.S. data alone do not generalize to the panel data set; information and familiarity variables and proxies for the degree of capital market openness play an important role in explaining both home and foreign investment biases. We appreciate the comments and suggestions of Ricardo Brito, Bob Hodrick, Wei Jiang and participants at

NOTE: International Finance Discussion Papers are preliminary materials circulated to stimulate discussion and critical comment. References in publications to International Finance Discussion Papers (other than an acknowledgment that the writer has had access to unpublished material) should be cleared with the author or authors. Recent IFDPs are available on the Web at

NOTE: International Finance Discussion Papers are preliminary materials circulated to stimulate discussion and critical comment. References in publications to International Finance Discussion Papers (other than an acknowledgment that the writer has had access to unpublished material) should be cleared with the author or authors. Recent IFDPs are available on the Web at www.federalreserve.gov/pubs/ifdp/.

10 Emissions from Livestock and Manure Management 10.1 Introduction.........................................................................................................................................10.7 10.2 Livestock Population and Feed Characterisation................................................................................10.7 10.2.1 Steps to define categories and subcategories of livestock...........................................................10.7

The views in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of San Francisco or the Board of Governors of the Federal Reserve System. This paper was produced under the