In finance and investing, the Home bias puzzle is the term given to describe the fact that individuals and institutions in most countries hold only modest amounts of foreign equity, and tend to strongly favor company stock from their home nation. This finding is regarded as puzzling, since ample evidence shows equity portfolios obtain substantial benefits from diversification into global stocks. Maurice Obstfeld and Kenneth Rogoff identified this as one of the six major puzzles in international macroeconomics.[1][2]
^Obstfeld, Maurice; Rogoff, Kenneth (2000). "The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?". In Bernanke, Ben; Rogoff, Kenneth (eds.). NBER Macroeconomics Annual 2000. Vol. 15. The MIT Press. pp. 339–390. ISBN 978-0-262-02503-4.
^The other puzzles identified by Obstfeld and Rogoff are the Feldstein–Horioka puzzle, the home bias in trade puzzle, the consumption correlations puzzle, the purchasing power and exchange rate disconnect puzzle, and the Baxter–Stockman neutrality of exchange rate regime puzzle.
and 23 Related for: Equity home bias puzzle information
In finance and investing, the Homebiaspuzzle is the term given to describe the fact that individuals and institutions in most countries hold only modest...
The homebiaspuzzle could refer to two distinct economic phenomena: Equityhomebiaspuzzle, the fact that individuals and institutions in most countries...
major puzzles in international economics. The others are the Feldstein-Horioka puzzle, the equityhomebiaspuzzle, the consumption correlations puzzle, the...
There is currently no framework to explain this observation. Equityhomebiaspuzzle: This puzzle concerns the observation that individuals and institutions...
providing explanations for long-standing exchange rate puzzles, and for the equity premium puzzle. In contrast to the above classical approach, models here...
and pay, increasing access to education, and promoting diversity, social equity and redressing alleged wrongs, harms, or hindrances, also called substantive...
A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims...
bond § Valuation Equity valuation #Equity valuation above Fundamental analysis Stock valuation Capital Markets Business valuation Equity (finance) § Valuation...
“Anomalies: The Equity Premium Puzzle” (with Richard Thaler), Journal of Economic Perspectives, 11 (1), Winter 1997, pp. 191–200. “The Shrinking Equity premium...
health can be measured in a number of ways, such as brand awareness, brand equity, brand usage and brand loyalty. Another factor that can be measured is marketing...
tightness-looseness of the interviewer's and interviewee's home countries can introduce method bias, negatively affecting the interviewer's assessment of the...
Pasadena Star-News. Lesley Goldberg (May 10, 2017). "'Underground' Seeks New Home as Sinclair Deal Leads to "Complete Pause" at WGN America". The Hollywood...
also worked as a hedge fund principal and a venture capital and private equity fund investor. He formerly worked as a banker, a lobbyist, and a legal representative...
Quo Bias. Journal of Economic Perspectives, 5(1), pp. 193–206. Benartzi, S. and Thaler, R.H., 1995. Myopic Loss Aversion and the Equity Premium Puzzle. Quarterly...
Shlomo; Thaler, Richard H. (1995). "Myopic Loss Aversion and the Equity Premium Puzzle". The Quarterly Journal of Economics. 110 (1): 73–92. CiteSeerX 10...
question-and-answer-based selection process, and a set of Facebook Engineering Puzzles where users would solve computational problems which gave them an opportunity...
Retrieved January 24, 2012. Staff writer (November 24, 1993). "Restaurant Bias Ban Loses". The New York Times. Archived from the original on March 9, 2014...
the Academic Achievement of Children of Immigrants: A Cultural History Puzzle". American Educational Research Journal. 36 (3): 489–507. doi:10.2307/1163548...
economic concerns. However, it is often noted that democracy tends to be biased towards the present. Scholars, like Dennis F. Thompson, often describe that...
Group is owned by Liberty Media, which acquired it in 2017 from private-equity firm CVC Capital Partners for £6.4 billion ($8 billion). Formula One originated...
the category. In New York City, graphic designer Carter James tries to get home to his dog, Jeter, the morning after a first date, only to find himself trapped...
Global Information