Coeurdacier, Nicolas; Kollmann, Robert Miguel W. K.; … - Deutsche Bundesbank - 2008
two familiar explanation of equity home bias: transaction costs that impede international diversification, and terms of …, shocks to the efficiency of physical investment, as well as international trade in stocks and bonds. In our model, domestic … goods and in foreign goods. In contrast to related models, the low level of international diversification does not depend on …