; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Rational Herd Behavior and the Globalization of Securities Markets"; ; "batchuser@example.com"; "Calvo, Guillermo A.", "Mendoza, Enrique G., 1963-"; "Federal Reserve Bank of Minneapolis"; "F34 - International Lending and Debt Problems", "F36 - Financial Aspects of Economic Integration", "G11 - Portfolio Choice; Investment Decisions", "F30 - International Finance: General", "G15 - International Financial Markets"; "This paper shows that globalization of securities markets exacerbates the volatility of capital flows by strengthening incentives for herding behavior. This is a prediction of a mean-variance portfolio optimization model with imperfect information, in which investors acquire country-specific expertise at a fixed cost and incur variable reputational costs. The model produces equilibria in which incentives to confirm rumors decrease with globalization. Simulations based on equity markets data and country credit ratings suggest that herd behavior can induce large capital outflows from emerging markets."^^; "1997-08-01"; "2019-05-21T16:26:46.49511475+00:00"^^; "https://doi.org/10.21034/dp.120"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Wed Apr 22 16:47:33 2020"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "113", "515"; "Discussion paper (Federal Reserve Bank of Minneapolis. Institute for Empirical Macroeconomics)"; "120"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Institute for Empirical Macroeconomics"; "Published as \"Rational Contagion and the Globalization of Securities Markets\" in: _Journal of International Economics_ (Vol. 51, No. 1, June 2000, pp. 79-113) https://doi.org/10.1016/S0022-1996(99)00038-0."^^; ; "Publication" . ; .