To what extent does human capital increase the home country bias?

Bernard Boonstra and Elmer Sterken

No 01E03, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: Abstract This paper analyses the role of human capital as a hedge against future unexpected changes in consumption of nontradable goods. We show, in line with Baxter-Jermann (1997) that human capital aggra- vates the home country bias, although we a lower increase of the bias based on an empirical analysis for the U.S. economy.

Date: 2001
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