A functional coefficient model view of the Feldstein–Horioka puzzleHerwartz, H. and Xu, F. (2010) A functional coefficient model view of the Feldstein–Horioka puzzle. Journal of International Money and Finance, 29 (1). pp. 37-54. ISSN 0261-5606 Full text not archived in this repository. It is advisable to refer to the publisher's version if you intend to cite from this work. See Guidance on citing. To link to this item DOI: 10.1016/j.jimonfin.2008.12.001 Abstract/SummaryWhat does the saving–investment (SI) relation really measure and how should the SI relation be measured? These are two of the most discussed issues triggered by the so-called Feldstein–Horioka puzzle. Based on panel data we introduce a new variant of functional coefficient models that allows to separate long and short to medium run parameter dependence. The new modeling framework is applied to uncover the determinants of the SI relation. Macroeconomic state variables such as openness, the age dependency ratio, government current and consumption expenditures are found to affect the SI relation significantly in the long run.
Altmetric Deposit Details University Staff: Request a correction | Centaur Editors: Update this record |
Lists
Lists
