A Survey on the Feldstein-Horioka Puzzle: What Has Been Done and Where We Stand
Posted: 22 Jun 2007 Last revised: 14 Mar 2011
Date Written: May 8, 2009
The objective of this paper is to present a survey of the research related to the Feldstein-Horioka puzzle and, in particular, to investigate what economists have learned, which parts of the puzzle have been resolved, which parts remain to be addressed and where future research is heading to. This paper is different from other attempts because it reviews the most recent literature and presents it according to the theoretical and/or empirical approach to the subject. Thus, it can be useful to academics and policy makers who are interested in understanding how and why savings and investment move the way they do.
Keywords: Feldstein-Horioka puzzle, survey
JEL Classification: F20, F36
Suggested Citation: Suggested Citation