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The Feldstein–Horioka puzzle revisited: A Monte Carlo study

✍ Scribed by Guglielmo Maria Caporale; Ekaterini Panopoulou; Nikitas Pittis


Book ID
116658697
Publisher
Elsevier Science
Year
2005
Tongue
English
Weight
106 KB
Volume
24
Category
Article
ISSN
0261-5606

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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