Testing the Validity of the Feldstein-horioka Puzzle for Croatia

  • Hrvoje Joíc, Mislav Joícy, Hrvoje Josic, Mislav Jošić
  • Published 2013

Abstract

The relationship between savings and investment is one of the fundamental issues in international economics. This topic comes in the centre of attention after pioneering work of Feldstein and Horioka (1980). The aim of the paper is testing of the Feldstein-Horioka puzzle in the case of Croatia since 1994. Johansen’s cointegration approach and Granger causality test were used. In order to determine the dynamics of the savings-investment relation econometric VAR model was introduced. Using innovation analysis impulse response functions and variance decomposition analysis of the observed variables were given. PhD, Department of International Economics, Faculty of Economics and Business, University of Zagreb, e-mail: hjosic@efzg.hr yPhD, Department of International Economics, Faculty of Economics and Business, University of Zagreb, e-mail: mjosic@efzg.hr Hrvoje Josic, Mislav Josic TESTING THE VALIDITY OF THE FELDSTEIN-HORIOKA PUZZLE FOR CROATIA Economic Research Ekonomska Istrazivanja Vol. 25(3) Page:581

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Cite this paper

@inproceedings{Joc2013TestingTV, title={Testing the Validity of the Feldstein-horioka Puzzle for Croatia}, author={Hrvoje Jo{\'i}c and Mislav Jo{\'i}cy and Hrvoje Josic and Mislav Jo{\vs}i{\'c}}, year={2013} }