Equity home bias and the US stock market supremacy

One of the most documented behavioral anomalies that afflict investors is their preference for the domestic stock market, ignoring the benefits that a portfolio of international stocks can offer in terms of diversification. But beyond the benefits of “statistical” sort, there are factual reasons to avoid this bias. Not only does a broader investment universe … Continued

Democracy and economic prosperity

Does the form of government condition economic performance? And if so, is democracy superior to an authoritarian rule? We tend to think like this because most developed economies are democratic, but you cannot tell whether they are rich because of, or in spite of, being democratic; or if economic success has helped these societies to … Continued