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Another Piece in the Feldstein — Horioka Puzzle

✍ Scribed by Andrew J. Abbott; Glauco De Vita


Book ID
108538762
Publisher
John Wiley and Sons
Year
2003
Tongue
English
Weight
546 KB
Volume
50
Category
Article
ISSN
0036-9292

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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 w