The "Real" Explanation of the Feldstein-Horioka Puzzle

Nicholas Ford and Charles Horioka ()

No 22081, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper shows that global capital markets cannot, by themselves, achieve net transfers of financial capital between countries and that both the integration of global financial markets as well as the integration of global goods markets are needed to achieve net transfers of capital between countries. Frictions (barriers to mobility) in one or both of these markets can impede net transfers of capital between countries, produce the Feldstein and Horioka (1980) results, and prevent real interest rates from being equalized across countries. Moreover, there is empirical evidence that barriers to the mobility of goods and services are an important obstacle to international capital mobility.

JEL-codes: F21 F32 F36 G15 (search for similar items in EconPapers)
Date: 2016-03
Note: IFM ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published as Nicholas Ford & Charles Yuji Horioka, 2017. "The ‘real’ explanation of the Feldstein–Horioka puzzle," Applied Economics Letters, vol 24(2), pages 95-97.

Downloads: (external link)
http://www.nber.org/papers/w22081.pdf (application/pdf)

Related works:
Journal Article: The ‘real’ explanation of the Feldstein–Horioka puzzle (2017)
Working Paper: The 'Real' Explanation of the Feldstein-Horioka Puzzle (2016)
Working Paper: The 'Real' Explanation of the Feldstein-Horioka Puzzle (2016)
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: https://EconPapers.repec.org/RePEc:nbr:nberwo:22081

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w22081

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().