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There is a large and growing literature on spillovers but no study that systematically evaluates the importance of spillovers for portfolio management. This paper provides such an analysis and demonstrates that spillovers are fully embedded in estimates of expected returns, variances, and...
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externalities from capital controls on investor portfolios. The analysis is structured based on information from investor interviews … expectations about future policies rather than the direct cost of the controls. This evidence of significant externalities from …
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