01755cas a2200253 a 4500 AALejournalIMF000728 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856316 1018-5941 BD-DhAAL BD-DhAAL Levy Yeyati, Eduardo. Crises, Contagion, and the Closed : End Country Fund Puzzle / Eduardo Levy Yeyati, Angel Ubide. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (54 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the behavior of closed-end country fund discounts, including evidence from the Mexican and East Asian crises. We find that the ratio of fund prices to their fundamental value increases dramatically during a crisis, an anomaly that we denote the 'closed-end country fund puzzle.' Our results show that the puzzle relates directly to the fact that international investors are less (more) sensitive to changes in local (global) market conditions than domestic investors. This asymmetry implies that foreign participation in local markets can both help dampen a crisis in the originating country, and amplify the contagion to noncrisis countries. Mode of access: Internet Ubide, Angel. IMF Working Papers; Working Paper ; No. 1998/143 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/143/001.1998.issue-143-en.xml IMF e-Library