Register for the event
As part of the Vilfredo Pareto Research Seminar series, the International Economics Department at the Graduate Institute is pleased to invite you to a public talk given by Matteo Maggiori, Associate Professor of Finance at the Stanford Graduate School of Business.
He will present his work Redrawing the Map of Global Capital Flows: The Role of Cross-Border Financing and Tax Havens, co-authored with Antonio Coppola, Brent Neiman and Jesse Schreger.
Abstract: Global firms finance themselves through foreign subsidiaries, often shell companies in tax havens, which obscures their true economic location in official statistics. We associate the universe of traded securities issued by firms in tax havens with their issuer’s ultimate parent and restate bilateral investment positions to better reflect the financial linkages connecting countries around the world. Bilateral portfolio investment from developed countries to firms in large emerging markets is dramatically larger than previously thought. The national accounts of the United States, for example, understate the U.S. position in Chinese firms by nearly 600 billion dollars. Further, we demonstrate how offshore issuance in tax havens affects our understanding of the currency composition of external portfolio liabilities and the nature of foreign direct investment. Finally, we provide additional restatements of bilateral investment positions, including one based on the geographic distribution of sales.
Please note that this event will take place from 16:15 - 17:45 CET instead of the usual seminar series time.
About the speaker
Matteo Maggiori is a co-founder and director of the Global Capital Allocation Project. He is a faculty research fellow at the National Bureau of Economic Research and a research affiliate at the Center for Economic Policy Research. He received his PhD from the University of California at Berkeley. Among a number of honors, he is the recipient of the 2021 Fisher Black Prize awarded for the best financial economist under the age of 40, the 2019 Guggenheim Fellowship, and the 2019 Carlo Alberto Medal for the best Italian economist under the age of 40. His research focuses on international macroeconomics and finance.