The Feldstein-Horioka puzzle has triggered a broad range of econometric specifications to investigate saving-investment (SI) relations. In this article, we attempt to determine a family of econometric models that is most suitable in explaining actual ratios of domestic investment to GDP via...

This article provides Monte Carlo evidence on the performance of general-to-specific and specific-to-general selection of explanatory variables in linear (auto)regressions. In small samples the former is markedly inefficient in terms of ex-ante forecasting performance.

Compared with the broad supply of theoretical approaches towards systemic risk in (international) banking systems empirical contributions measuring its degree or potential triggering factors are rather scarce. Kwast and de Nicolo (2002) put systemic risk and (conditional) stock price...