On the Origins of the Multinational Premium

This paper reflects the authors’ views and not those of the Federal Reserve Bank of Boston or the Federal Reserve System. We benefited from feedback received from Fernando Alvarez, Francois Gourio, Veronica Guerrieri, Simone Lenzu, Esteban Rossi-Hansberg, Rob Shimer, and seminar and conference participants at various institutions.We are especially grateful to Vanessa Alviarez and Fabian Trottner for helpful early discussions of the paper, and to Daniela Scur for her help accessing the World Management Survey Data. Frankie Lin, Brenton Stefko, and Cole Kurokawa provided outstanding research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.