Mondria, Jordi; Wu, Thomas - Economics Department, University of California-Santa … - 2006
behavior of the home bias - an initial plateau before 1985, then a decrease until 1994 followed by stabilization on another … resulting endogenous local information advantage generates a gradual decrease of the home bias until its steady state. In the … long run, the home bias remains large due to the interaction of the optimal attention allocation with the optimal portfolio …