Resource title

The international diversification puzzle is not worse than you think

Resource image

image for OpenScout resource :: The international diversification puzzle is not worse than you think

Resource description

This paper offers two main contributions. First, it shows how the Baxter and Jermann (1997) claim that, once we consider human capital risk, the international diversification puzzle is worse than we think, is based on an econometric misspecification rejected by the data. Second, it outlines how, once the misspecification is corrected, the results are reverted: considering the human capital risk does not unequivocally worsen the puzzle and in some cases helps explaining it.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://eprints.lse.ac.uk/4814/1/The_International_Diversification_Puzzle_is_not_Worse_Than_You_ThinkLSERO.pdf

Resource license