To what extent does human capital increase the home country bias?

Bernard Boonstra, Elmer Sterken

Research output: Working paperAcademic

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Abstract This paper analyses the role of human capital as a hedge against future unexpected changes in consumption of nontradable goods. We show, in line with Baxter-Jermann (1997) that human capital aggra- vates the home country bias, although we a lower increase of the bias based on an empirical analysis for the U.S. economy.
Original languageEnglish
Number of pages11
Publication statusPublished - 2001

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