That’s Where The Money Was

Foreign Bias and English Investment Abroad, 1866–1907

Dados Bibliográficos

ID9716334
AutoresBenjamin R Chabot (Yale and NBER), Benjamin Chabot, Christopher J Kurz (Federal Reserve Board of Governors), C Kurz (0000-0002-9105-3997, Federal Reserve Board of Governors)
Ano2010
Volume120
Fascículo547
Páginas1056-1079
Data de publicação2010-09-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2009.02346.x
OpenAlexW3124088284
IdiomaEN
Citações recebidas20
Referências citadas41

Why did Victorian Britain send so much capital abroad? We collect over 500,000 monthly British and foreign security returns between 1866 and 1907 and investigate the effect of international diversification on Victorian investors' portfolios. This is the first study to use nineteenth-century data that is both broad enough and sampled at a high enough frequency to examine if foreign assets expanded the mean-variance efficient frontier of British investors and how valuable this expansion was in terms of utility. We find that foreign assets significantly expanded the mean-variance frontier and resulted in utility gains equivalent to large increases in wealth. Copyright © The Author(s). Journal compilation © Royal Economic Society 2010

Business · Diversification (marketing strategy · Economics · Financial economics · Foreign capital · Foreign direct investment · Frontier · Macroeconomics · Monetary economics · Political science · Variance (accounting · Accounting · Financial Markets and Investment Strategies · Historical Economic and Social Studies · Monetary Policy and Economic Impact