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This study uses survey data of fund managers' views on prospects for international equity markets to shed light on why investment portfolios are significantly biased towards domestic equities. We find that fund managers from the United States, the United Kingdom, continental Europe, and Japan show a significant relative optimism towards their home equity market. Where institutional factors have largely failed to explain the puzzle, our evidence lends support to behavioral explanations of the bias.
The Review of Economics and Statistics is an 84-year old general journal of applied (especially quantitative) economics. Edited at Harvard University's Kennedy School of Government, The Review has published some of the most important articles in empirical economics. From time to time, The Review also publishes collections of papers or symposia devoted to a single topic of methodological or empirical interest.
Among the largest university presses in the world, The MIT Press publishes over 200 new books each year along with 30 journals in the arts and humanities, economics, international affairs, history, political science, science and technology along with other disciplines. We were among the first university presses to offer titles electronically and we continue to adopt technologies that allow us to better support the scholarly mission and disseminate our content widely. The Press's enthusiasm for innovation is reflected in our continuing exploration of this frontier. Since the late 1960s, we have experimented with generation after generation of electronic publishing tools. Through our commitment to new products—whether digital journals or entirely new forms of communication—we have continued to look for the most efficient and effective means to serve our readership. Our readers have come to expect excellence from our products, and they can count on us to maintain a commitment to producing rigorous and innovative information products in whatever forms the future of publishing may bring.
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