Stulz, René M. (contributor) - 2005
birth to the Feldstein-Horioka
puzzle. As investors diversify internationally, a country’s saving, which depends on income … each other. This expected evolution has happened to some extent, but recent
studies mostly conclude that the puzzle is … financed by local savings did
not change in the 1990s.
A related puzzle is the Lucas paradox. Lucas (1990) points out that …