By allowing for imperfectly informed markets and the role of private information, we offer new insights about observed deviations of portfolio concentrations in domestic relative to foreign risky assets, or "home bias", from what standard finance models predict. Our model ascribes the "bias" to...

Risky-asset prices are conventionally modeled as quot;fully (information-) revealingquot;. Much less work has been done on how prices get to reveal information. Following the quot;noisy-pricesquot;, rational-expectations approach, our answer focuses on the micro-foundations of information...

Unlike physical capital, human capital has both embodied and disembodied dimensions. It can be perceived of as skill and acquired knowledge, but also as knowledge spillover effects between overlapping generations and across different skill groups within and across countries. We illustrate the...