Is the Feldstein-Horioka Puzzle Really a Puzzle ?

@inproceedings{1999IsTF,
  title={Is the Feldstein-Horioka Puzzle Really a Puzzle ?},
  author={},
  year={1999}
}
  • Published 1999
The empirical evidence that national saving and domestic investment are correlated, also known as Feldstein-Horioka (1980) Puzzle, has received significant attention in the literature since Feldstein and Horioka interpret it as an evidence of low international capital mobility. This paper argues that there is nothing mysterious in the finding that investment and saving are correlated. Since the neoclassical growth theory predicts that in the steady state investment and saving will be… CONTINUE READING
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