The Modigliani Puzzle Revisited: A Note

11 Pages Posted: 27 Feb 2018

See all articles by Margarita Katsimi

Margarita Katsimi

Athens University of Economics and Business - Department of International and European Economic Studies; CESifo (Center for Economic Studies and Ifo Institute)

Gylfi Zoega

University of Iceland; University of London - Birkbeck College; Centre for Economic Policy Research (CEPR)

Date Written: January 23, 2018

Abstract

We estimate the relationship between investment and unemployment in order to explore whether the medium-term relationship emphasized by Franco Modigliani survived the recent Great Recession. Our results indicate that the relationship held up, both employment and investment fell although the estimated coefficient of investment is slightly smaller when the period 2000-2015 is added to the 1960-2000 period.

Keywords: Modigliani puzzle, investment, unemployment, Great Recession

JEL Classification: J100, E200

Suggested Citation

Katsimi, Margarita and Zoega, Gylfi, The Modigliani Puzzle Revisited: A Note (January 23, 2018). CESifo Working Paper Series No. 6833, Available at SSRN: https://ssrn.com/abstract=3129986

Margarita Katsimi (Contact Author)

Athens University of Economics and Business - Department of International and European Economic Studies ( email )

76, Patision Avenue
GR-10434 Athens
Greece

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Gylfi Zoega

University of Iceland ( email )

IS-101 Reykjavik
Iceland

University of London - Birkbeck College ( email )

Malet Street
London, WC1E 7HX
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
25
Abstract Views
180
PlumX Metrics