Cornand, Camille; Gandré, Pauline; Gimet, Céline - HAL - 2014
2012. Home bias in sovereign debt responds positively to fundamentals and expectations shocks but we find no evidence that … the increase in home bias is destabilizing per se. Second, we theoretically model the impact of the previous shocks in a … second-generation model of crisis with endogenous home bias in sovereign debt. We derive conditions under which a higher home …