, which is that even though global financial markets appear to be integrated, levels of saving and investment are correlated …

investment rate on the domestic saving rate, the estimated coefficient is significantly larger than what would be expected in a … world characterized by high capital mobility) should have never been labeled as such. First, we show that the investment and … saving series typically used in empirical exercises to test the Feldstein-Horioka thesis are not appropriate for testing …

imperfections in causing saving-investment corrrelations has hardly been investigated so far. … between national savings and domestic investment emerges as a robust empirical regularity. If this regularity is 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 …

-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 …