Estimating the Gains from International Diversification : The Case of Pension Funds
For pension funds, international assets represent an opportunity to improve their returns while possibly reducing risks. Nonetheless, pension funds in many developing countries face regulations that limit the choice of international investments. This paper proposes a new methodology to estimate the gains from international diversification in which the optimal asset allocation of pension funds is constrained by financial frictions. The empirical strategy is applied to the aggregate holdings of pension funds in a large group of countries to calculate the gains from increasing the current level of exposure to international securities. The methodology should give policy makers the opportunity to identify jurisdictions where pension funds could benefit the most from expanding their foreign holdings
Year of publication: |
2021
|
---|---|
Authors: | Afanador, Juan Pablo ; Davis, Richard ; Pedraza, Alvaro |
Publisher: |
2021: World Bank, Washington, DC |
Saved in:
freely available
Extent: | 1 Online-Ressource |
---|---|
Series: | Policy Research Working Paper ; No. 9635 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | English |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012567693
Saved in favorites
Similar items by person
-
Estimating the Gains from International Diversification : The Case of Pension Funds
Afanador, Juan Pablo, (2021)
-
Do Foreign Investors Underperform? An Empirical Decomposition into Style and Flows
Pedraza, Alvaro, (2017)
-
More limit theory for the sample correlation function of moving averages
Davis, Richard, (1985)
- More ...