☆ Much of this paper was written while Davis wa employed by, the Federal Reserve Bank of New York. The are those of the authors and do not necessarily refle Reserve Bank of New York or the Federal Reserve Syste Elhanan Helpman and Oleg Itskhoki for very helpful co this paper, and to seminar participants at Columbia, For and the NBER. ⁎ Corresponding author at: Department of Economi York, NY 100...