The Feldstein-Horioka Fact

21 Pages Posted: 18 Nov 2009 Last revised: 5 Aug 2010

See all articles by Domenico Giannone

Domenico Giannone

Federal Reserve Banks - Federal Reserve Bank of New York; Centre for Economic Policy Research (CEPR)

Michele Lenza

European Central Bank (ECB)

Multiple version iconThere are 3 versions of this paper

Date Written: November 2009

Abstract

This paper shows that general equilibrium effects can partly rationalize the high correlation between saving and investment rates observed in OECD countries. We find that once controlling for general equilibrium effects the saving-retention coefficient remains high in the 70's but decreases considerably since the 80's, consistently with the increased capital mobility in OECD countries.

Suggested Citation

Giannone, Domenico and Lenza, Michele, The Feldstein-Horioka Fact (November 2009). NBER Working Paper No. w15519. Available at SSRN: https://ssrn.com/abstract=1508210

Domenico Giannone (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Michele Lenza

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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