What determines partisan portfolio allocation in African democracies? Despite the vast literature on government formation in Europe and Latin America, there have been no studies of partisan portfolio allocation in Africa. Although coalition governments are increasingly common in Africa, most...

As in the case with perfect foresight, under conditions of uncertainty investors respond to changes in the assets' relative returns. An increase in the expected return of one asset here typically (if both assets are not perfectly correlated) induces a shift, but not a plunge toward that asset....

Excessive concentration increases national risk in an uncertain world. This paper views economic and political diversification as an essential aspect of national risk management aimed at promoting efficiency, growth, and welfare. The paper first presents economic and political diversification...