 Testing for Capital Mobility: A Random Coefficients ApproachSaleh Amirkhalkhali and Atul A Dar Empirical Economics, 1993, vol. 18, issue 3, 523-41 Abstract: This paper extends the Feldstein-Horioka (1980), Feldstein (1983) and subsequent studies on the degree of capital mobility, by adopting a random coefficients model. This approach is more general in that it permits inter-country variations in the degree of credit mobility to arise due to the difference in size as well as in other institutional or structural characteristics. In addition, it is a refinement of stochastic laws as defined by Pratt and Schlaifer (1984, 1988). Our results point to significantly inter-country differences in the degree of capital mobility, thereby lending support to the random coefficients approach. In particular, our results indicate that, on average, the degree of capital mobility is much higher than implied by fixed coefficients approach. Finally, country size itself does not appear to bear a systematic relationship with the degree of capital mobility is much higher than implied by fixed coefficients approach. Finally, country size itself does not appear to bear a systematic relationship with the degree of capital mobility as suggested by Murphy. Date: 1993 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:18:y:1993:i:3:p:523-41 Ordering information: This journal article can be ordered from Access Statistics for this article Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund More articles in Empirical Economics from Springer |
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