Yasutomi, Ayumu; Horioka, Charles Yuji - Institute of Social and Economic Research (ISER), Osaka … - 2010
In this paper, we show that Adam Smith pointed out the existence of the Feldstein-Horioka Paradox or Puzzle and even gave an explanation for it morethan 200 years before the publication of Feldstein and Horioka (1980). Smith argues that it is the pursuit of their own security that leads owners...