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 side by side in a cross-country framework and discusses how they interact and …

) abilities and on the sectoral concentration risk of a credit portfolio. In this paper, we examine in the first part if … increase of portfolio risk due to the higher sectoral concentration. If specialization is instead measured by distance measures …

-offs and write-downs, we examine the impact of loan portfolio sector concentration on credit risk. By controlling for common …

This paper presents a model comparing the optimal degree of asset class diversification abroad by a central bank and a …. We also show how the diversification differences between the strategies of the bank and SWF is affected by the government …

compare the optimal degree of diversification abroad by a central bank versus that of a sovereign wealth fund. We show that if … portfolio diversification of the central bank induces authorities to establish a wealth fund in pursuit of higher returns. …