International portfolios, capital accumulation and foreign assets dynamics
نویسندگان
چکیده
منابع مشابه
International Portfolios, Capital Accumulation and Foreign Asset Dynamics International Portfolios, Capital Accumulation and Foreign Assets Dynamics
Despite the liberalization of capital ows among OECD countries, equity home bias remains sizable. We depart from the two familiar explanations of equity home bias: transaction costs that impede international diversi cation, and terms of trade responses to supply shocks that provide risk sharing, so that there is little incentive to hold diversi ed portfolios. We show that the following ingredi...
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Despite the liberalization of capital ows among OECD countries, equity home bias remains sizable, but is now less severe than in earlier decades; as a result, uctuations in returns on foreign assets have a substantial e¤ect on countrieswealth. As documented in this paper, changes in net foreign asset positions (NFA) are highly volatile, serially uncorrelated and countercyclical. We show that...
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ژورنال
عنوان ژورنال: Journal of International Economics
سال: 2010
ISSN: 0022-1996
DOI: 10.1016/j.jinteco.2009.05.006