The Feldstein-Horioka fact

Domenico Giannone and Michele Lenza

No 873, Working Paper Series from European Central Bank

Abstract: This paper shows that general equilibrium effects can partly rationalize the high correlation between saving and investment rates observed in OECD countries. We find that once controlling for general equilibrium effects the saving-retention coefficient remains high in the 70’s but decreases considerably since the 80’s, consistently with the increased capital mobility in OECD countries. JEL Classification: C23, F32, F41

Keywords: Capital Mobility; Dynamic Factor Model.; International Comovement; Saving-Investment Correlation (search for similar items in EconPapers)
Date: 2008-02
Note: 411196
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Chapter: The Feldstein-Horioka Fact (2010)
Journal Article: The Feldstein-Horioka Fact (2010)
Working Paper: The Feldstein-Horioka Fact (2009)
Working Paper: The Feldstein-Horioka fact (2009)
Working Paper: The Feldstein-Horioka Fact (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2008873

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