Guibaud, Stéphane; Coeurdacier, Nicolas - Department of Economics, Sciences économiques - 2008
international financial integration. When the (endogenous) cross-country return correlation is high, small frictions in equity … integrated stock markets. We consider a continuous-time model of a two-country endowment economy in which the level of financial … integration is captured by a proportional tax on foreign dividends. Despite the heterogeneity among investors induced by this tax …