Economics at your fingertips  

The Feldstein-Horioka Puzzle and Capital Mobility: A Review

Jerry Coakley, Farida Kulasi and Ronald Smith ()

International Journal of Finance & Economics, 1998, vol. 3, issue 2, 169-88

Abstract: This paper reviews how economists responded to the Feldstein-Horioka (FH) view that a high saving-investment association across OECD countries implied low capital mobility. This posed an uncomfortable puzzle since the conventional wisdom in most exchange rate and open-economy macroeconomic models was that capital mobility was high. In the face of a variety of replications, the FH result of a high cross-section association between saving and investment rates in OECD countries has remained remarkably robust. The debate over whether saving-investment comovements are informative about capital mobility is still unresolved although the skeptics appear to be in the ascendancy. Copyright @ 1998 by John Wiley & Sons, Ltd. All rights reserved.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (118) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing ().

Page updated 2019-07-31
Handle: RePEc:ijf:ijfiec:v:3:y:1998:i:2:p:169-88