Nontraded goods, nontraded factors, and international non-diversification
研究非贸易消费品或非贸易生产要素能否解释投资者组合中的“本土偏好”现象，发现只要个人能自由交易金融资产，答案是否定的，但非贸易品股票的最优持有量取决于贸易品与非贸易品之间的替代弹性。
Can the presence of nontraded consumption goods or nontraded factors of production explain the high degree of "home bias" displayed by investor portfolios? We find that the answer is no, so long as individuals have access to free international trade in financial assets. In particular, it is never optimal to exhibit home bias with respect to domestic traded-good equities. By contrast, holdings of nontraded-good equities in an optimal portfolio will depend sensitively on the elasticity of substitution between traded and nontraded goods.