Opis

• Tytuł:
  Cross-Country Variation in Economic Preferences and the Asset Composition of International Investment Positions
• Twórca:
  Nieminen, Mika;
  Kuziemska-Pawlak, Kamila
• Współtwórca:
  School of Business and Economics, University of Jyväskylä;
  Faculty of Economics and Sociology, University of Lodz;
  mika.p.nieminen@jyu.fi;
  kamila.kuziemska@uni.lodz.pl
• Opis:
  A stylized fact of international capital markets is that advanced countries tend to be long and developing countries short in risky assets (i.e., portfolio equity and foreign direct investment (FDI)). In other words, residents of advanced countries hold a larger stock of portfolio equity abroad than residents of developing countries, and firms in advanced countries have more foreign subsidiaries than firms in developing countries. This paper is the first to utilize a large-scale international survey on economic preferences to propose a behavioral explanation for the heterogeneity in the asset composition of international investment positions. We provide robust empirical evidence that countries with a high time preference (i.e., patience) or a high risk preference (i.e., risk-taking) tend to have a positive net international investment position and a positive net risky position. In addition, we show that countries with a high degree of negative reciprocity (e.g., willingness to punish for unfair action) tend to have a positive net FDI position. Overall, our findings suggest that preferences are important determinants of cross- country variation in net foreign asset positions.
• Dostępność obiektu:
  Dostęp otwarty
• Data:
  2022.12.13;
  2022.12
• Typ:
  Working Paper
• Język:
  angielski
• Format:
  application/pdf
• Wydawca:
  Uniwersytet Łódzki, Wydział Ekonomiczno-Socjologiczny
• Relacja:
  Lodz Economics Working Paper;;
  3
• Temat i słowa kluczowe:
  Time Preference;
  Risk Aversion;
  Negative Reciprocity;
  International Investment Position;
  Equity Investment;
  Foreign Direct Investment
• Identyfikator: http://hdl.handle.net/11089/44627
• Dostawca danych:
  Repozytorium Uniwersytetu Łódzkiego
• Czy mogę z tego obiektu skorzystać?:
  poproś o pozwolenie
• Rodzaj zawartości:
  teksty