Guidolin, Massimo - Federal Reserve Bank of St. Louis - 2005
different. At the end of the 1990s, the U.K., the most
well-diversi�ed country, was investing in foreign stocks only about one … of foreign equities by U.S. citizens,
NP
∗
t
≡x
∗
j,t
W
t
−(1+g
∗
t
)x
∗
j,t−1
W
t−1
, (1)
(x
∗
j,t
is the weight of the … portfolio �ows. BC �nd
that U.S. gross purchases of equities in foreign markets (i.e. x
∗
j,t
W
t
−x
∗
j,t−1
W
t−1
, using the …