Javascript verkar inte påslaget? - Vissa delar av Lunds universitets webbplats fungerar inte optimalt utan javascript, kontrollera din webbläsares inställningar.
Du är här

Endogenous Acquisition of Information and the Equity Home Bias

Publiceringsår: 2009
Språk: Engelska
Sidor: 741-759
Publikation/Tidskrift/Serie: Economica
Volym: 76
Nummer: 304
Dokumenttyp: Artikel i tidskrift
Förlag: Wiley-Blackwell


This paper investigates the extent to which differences in information costs can explain the equity home bias puzzle. In a model where information costs are higher for the Foreign asset than for the Home asset, we show that---if cost functions are convex and the assets have identical return characteristics---the expected size of the home bias in terms of differences in expected demands is positive and increasing in expected excess returns and risk, but decreasing in risk aversion. However, a calibration to US data suggests that information costs can explain only a small fraction of the observed home bias.


  • Economics
  • equity home bias
  • information acquisition
  • information costs


  • ISSN: 1468-0335

Box 117, 221 00 LUND
Telefon 046-222 00 00 (växel)
Telefax 046-222 47 20
lu [at] lu [dot] se

Fakturaadress: Box 188, 221 00 LUND
Organisationsnummer: 202100-3211
Om webbplatsen