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The international diversification puzzle is not worse than you think
| Content Provider | Semantic Scholar |
|---|---|
| Author | Julliard, Christian |
| Copyright Year | 2002 |
| Abstract | 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. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://eprints.lse.ac.uk/4814/1/The_International_Diversification_Puzzle_is_not_Worse_Than_You_ThinkLSERO.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |