in 1995 McCallum publish a paper that showed evidence of border effects that later was coined the home bias in trade puzzle and became one of the 6 major puzzles in international economics. I am just wondering is it still a puzzle ? that is, is it still disputed as it was before or do people belive it to be solved ?
I am writing an essey and case study on the Home bias in trade puzzle and for some reason, when I am ready some of the studies I feel like some economists belive that they have "solved" it. So thats why I wanted to ask this question.
