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This paper investigates the extent to which financial integration promotes growth by improving the quality of a country's capital stock. To that end, it derives a capital composition index, where the share of a particular type of capital in the total capital stock is determined by its embodied efficiency. The paper constructs its empirical counterpart using capital production and trade data. Using five-year averaged data between 1976 and 2001 for 60 countries, it provides evidence on the positive effects of financial flows on the capital stock's quality, with the largest impact coming from equity inflows. It also shows that when the capital composition is accounted for, the direct effect of financial flows on TFP diminishes. Although financial flows do not directly affect growth, they raise it indirectly by improving the composition of a country's capital stock. All else constant, financial flows explain a growth difference of 1.10 percentage points between the countries with total liabilities equal to the first quartile and the third quartile. Finally, the paper finds that the effect of financial flows on the composition of capital and therefore GDP growth is larger for less developed countries, and smaller and insignificant for countries with less developed financial markets. [JEL E22, F15, F21, F43, G15] IMF Economic Review (2015) 63, 325-352.

Energy efficiency and related demand management policies help mitigate the impacts of climate change by reducing the use of fossil fuels and reducing the energy sector's vulnerabilities to climate change impacts. Over the past forty years, federal and state-level energy efficiency policies (or standards) have been applied to household appliances, the corporate average fuel economy, electric demand-side management programs, weatherization assistance, and building codes. The U.S. residential housing sector accounts for approximately 21% of total primary energy consumption and 20% of domestic carbon dioxide emissions. Building construction codes and standards regulate the energy efficiency of newly constructed homes or commercial buildings and the energy efficiency requirements specific to renovations, major refurbishments, and the enlargement of buildings. Such codes generally provide minimum building requirements for heating and cooling systems and for any construction or renovations to the housing envelope that leads to energy savings.

The current study uses a local, charity-linked running event that attracts attendants with different motivations to participate and attitudes toward corporate social responsibility (CSR) to examine the effectiveness of sponsorship decisions for two primary, concurrent sponsors. Using a structural equation model for each sponsor, we find that the importance attached to various channels that influence sponsorship effectiveness to be sponsor specific. For the luxury automobile sponsor in our study, an attendant's motivation to participate is the only statistically significant and direct path to intention to purchase. Furthermore, while CSR also links to fit, the fit has no direct path to intention to purchase. This finding could potentially indicate that participants view the luxury automobile sponsorship as a positive expression of CSR, rather than through the event's lens. This finding implies that the luxury automobile dealer's sponsorship gains are not dependent on the event but the cause's support. In contrast, the sponsorship gains for the sports retailer are dependent on the event, where event satisfaction, event leverage, and event fit all have indirect paths to intention to purchase. Additionally, motivation to participate and the importance of CSR operates through different, indirect paths to intention to purchase for the sports retailer. While motivation to participate positively impacts event satisfaction and event satisfaction positively influences intention to purchase, CSR's importance operates through fit,which positively impacts intention to purchase. Our results for the sports retailer indicate an increased fit with the event enhances the sponsor's perceptions as socially responsible and enhances the intentions to purchase the sponsor's goods. Furthermore, a well-liked event increases the likelihood a participant will purchase the sports retailer's products

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