Risk aversion, wealth and international capital flows.
Full text is not in this repository.
Official URL: http://tinyurl.com/ykny5gp
This item is available in the Library Catalogue
This paper models capital flows in a rich-poor, two-country, two-asset, dual-risk economy with decreasing absolute risk aversion. The first risk is asset-specific. The second is political and dependent; i.e., related to particular asset outcomes. In this framework, the role of wealth in determining asset preferences is demonstrated, and the conditions for diversification are derived. The wealth effect and diversification conditions are applied to explain ongoing two-way capital flows in general as well as the apparent paradox of domestic capital flight with simultaneous inflows of foreign capital.
|Research Areas:||Middlesex University Schools and Centres > Business School > Accounting and Finance|
|Deposited On:||26 Mar 2010 12:43|
|Last Modified:||10 Dec 2014 20:29|
Repository staff only: item control page
Full text downloads (NB count will be zero if no full text documents are attached to the record)
Downloads per month over the past year