The determinants of international investment and attention allocation: Using internet search query data

• 成果类型: Article
• 署名作者: Mondria, Jordi; Wu, Thomas; Zhang, Yi
• 署名单位: University of California System; University of California Santa Cruz; University of Toronto; University of California System; University of California Santa Cruz
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2010.04.007
• 发表日期: 2010
• 页码: 85-95
• 关键词: home bias; asymmetric information; Attention allocation; Internet search query

摘要

This paper explores the joint determination of home bias and attention allocation. We overcome the typical challenge associated with evaluating attention allocation theories by using a new internet search query dataset to measure how much information investors decide to process. Employing an instrumental variables approach, we find empirical evidence of a two-way causality between home bias and attention. Our estimates suggest that if all countries were to receive the same level of attention as the U.S., then the average home bias by U.S. investors would fall from 85.2% to 57.3%. (C) 2010 Elsevier B.V. All rights reserved.