Levy, Haim; Levy, Moshe - In: Journal of Banking & Finance 47 (2014) C, pp. 29-40
Over the last 15years, dramatically decreasing foreign investment costs have not reduced the home bias. We show that … the home bias induced by a given cost is proportional to the factor ρ/(1−ρ), where ρ is the average correlation between … magnified, explaining the persistence of the home bias, and predicting its continuation. …