When Bonds Matter: Home Bias in Goods and Assets
---- Acknowledgements -----
We thank Maury Obstfeld, Fabrizio Perri, Paolo Pesenti, Helene Rey and seminar participants at Harvard, LBS, PSE, SciencesPo, Toulouse, UCLA, USC, UC Berkeley, the NBER IFM 2009 Fall meeting, the�CEPR International Macroeconomic and Finance Conference 2009 (ECARES/NBB) and the CEPR ESSIM 2008 meeting. Gabriel Chodorow-Reich and Victoria Vanasco provided outstanding research assistance. All errors are our sole responsibility. A first draft of this paper was completed while P-O. Gourinchas was visiting the London Business School whose hospitality is gratefully acknowledged. Pierre-Olivier Gourinchas thanks the NSF for financial support (grants SES-0519217 and SES-0519242) as well as the Coleman Fund Risk Management Research Center. Nicolas Coeurdacier thanks the ANR for financial support (Chaire d'Excellence INTPORT). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.