Guidolin, Massimo (contributor) - 2005
of foreign equities by U.S. citizens,
NP
∗
t
≡x
∗
j,t
W
t
−(1+g
∗
t
)x
∗
j,t−1
W
t−1
, (1)
(x
∗
j,t
is the weight of the … portfolio �ows. BC �nd
that U.S. gross purchases of equities in foreign markets (i.e. x
∗
j,t
W
t
−x
∗
j,t−1
W
t−1
, using the … then die.
Let x
j
t
=[x
j
1t
x
j
2t
]
0
(j=1, 2) be the portfolio investment in the two national stock markets by …