Katsimi, Margarita; Zoega, Gylfi - Birkbeck, Department of Economics, Mathematics & Statistics - 2014
We estimate the Feldstein-Horioka equation for the period 1960-2012 and find structural breaks that coincide with the introduction of the European single market in 1993, the introduction of the euro in 1999 and the financial crisis in 2008. The results suggest that the correlation between...