RT Journal Article
T1 Endogenous Home Bias in Portfolio Diversification and Firms Entry.
A1 Arespa-Castelló, Marta
K1 Macroeconomía
K1 Inversiones
AB The home bias in portfolios is considered a main puzzle in international macroeconomics. This paper pro- vides a new benchmark for its analysis in a tractable new open economy macroeconomic model, where the home-biased position is an optimal allocation. An equilibrium model of perfect risk-sharing is specified, with endogenous portfolios and firm entry. Unlike in previous work, the international portfolio diversifica- tion is driven by home bias in capital goods—independently of home bias in consumption when countries are of equal size. The model explains the recent patterns of portfolio allocations in developed economies. Most important, optimal portfolio shares are independent of market dynamics.
PB John Wiley & Sons Ltd
YR 2014
FD 2014-02-06
LK https://hdl.handle.net/10630/28677
UL https://hdl.handle.net/10630/28677
LA spa
NO Arespa, M. (2015), Endogenous Home Bias in Portfolio Diversification and Firms Entry. Review of International Economics, vol. 23 (1)
NO Spanish Ministry of Science and Innovation through grant ECO2012-34046.
DS RIUMA. Repositorio Institucional de la Universidad de Málaga
RD 20 ene 2026