Auteurs Centres de recherche Disciplines et Collections Projets
Français English
 
 

Home Biases, 19th Century Style

 

Notice

Type:   Working paper
 
Titre:   Home Biases, 19th Century Style
 
Auteur(s):   Flandreau, Marc - Centre for Finance and Development (Auteur)
 
Date de publication:   2005-12
 
Collection:   CEPR Discussion paper  :  n°5398
 
Mots-clés:   [] home bias, Lucas paradox
 
JEL:   F31,  N32
 
Résumé:   [en] This paper discusses the existence of 'home' biases in the 19th century global capital market, whereby colonies appear to have received a 'disproportionate' amount of capital from their metropolis. Starting from a discussion of the Bulow Rogoff (1989) problem, we argue that imperial links provided a natural institutional framework to make pre-commitment credible by ensuring an adequate degree of willingness to pay. This was not because imperial rule provided coercion or punishment, but rather because it supplied a legal framework that effectively suppressed the « sovereign » nature of colonial debts. We conclude that the greater facility with which capital migrated in the 19th century has much to do with the fact that colonies were more akin to the 'regions' of modern countries.
 
 

Pour citer cette publication

 

Fichiers

Version Format Fichier Taille
Version de l'auteur cfi-wp-mf-cepr5398.pdf 0,19 MB