This paper provides a theory of foreign equity investment restrictions. In a setting where the demand function for domestic shares differs between domestic and foreign investors, domestic entrepreneurs can maximize firm value by discriminating between domestic and foreign investors. The...

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This article provides a theory of foreign equity investment restrictions. We consider a model where the demand function for domestic shares differs between domestic and foreign investors because of deadweight costs in holding domestic and foreign securities that depend on the country of...

Two major empirical results are reported. First, it is shown that time series measuring real activity in major industrialized countries contain nonstationarities of the random walk type. Second, it turns out that the estimated influence of unexpected changes in inflation and monetary growth...

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