-run bivariate relationship between the time series of investment and saving. Third, I also examine the short-run as well as the … cyclical relationships between the time series of investment and saving. The results reported in this paper indicate that there … is a strong long-run and cyclical relationship between investment and saving, and this relationship seems to be …

-run investment-saving correlation follows directly from the economy's dynamic budget constraint and this does not depend on the … annual and quarterly post-war U.S. data, I find that investment and saving are cointegrated in levels as well as in rates … degree of international capital mobility. Therefore, unless the budget constraint is violated, the time series of investment …

, while risk aversion causes low investment elasticity and hence reduces the total benefit of capital account liberalization … investment elasticity. We show that a positive yet uncertain future productivity shock is likely to cause consumption booms … because of sluggish investment reactions. Our analysis shows that, the greater the expected future productivity is; or the …

Rogoff, JME 1995) and the 'saving-investment puzzle' (Feldstein and Horioka, EJ 1980). … of Sachs (1982)'s optimizing model in order to analyze the intertemporal smoothing role of saving components (fixed … while fixed investment provides more and more smoothing over time. Since our framework can accommodate various models of the …

of economics, but just the variability between external and domestic saving. …

. Using this model, I demonstrate how a positive investment-saving correlation can arise in a world with endogenous fiscal … capital mobility. This implies that the observed investment- saving comovement is not necessarily due to imperfect capital … mobility. The model has a testable implication: it predicts a lack of Granger causality from private saving to private …

strong evidence of cointegration between saving and investment rates. …