2-SIDED EXPROPRIATION AND INTERNATIONAL EQUITY CONTRACTS
成果类型：
Article
署名作者：
COLE, HL; ENGLISH, WB
署名单位：
University of Pennsylvania; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
刊物名称：
JOURNAL OF INTERNATIONAL ECONOMICS
ISSN/ISSBN：
0022-1996
DOI：
10.1016/0022-1996(92)90051-K
发表日期：
1992
页码：
77-104
关键词：
摘要：
The paper considers a model in which investors in two symmetrical countries can trade equity claims on their endowments. The governments of the two countries expropriate the foreign-owned securities if doing so raises domestic welfare. In spite of the possibility of expropriation, agents may still choose to hold completely pooled portfolios. Depending on preferences in the two countries, increases in the level of domestic output can increase or decrease the probability of expropriation. In the equilibria we consider, agents hold too much foreign equity: a reduction in foreign investment raises welfare by reducing the probability of expropriation.