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- 1974 - empirically support the theory. In contrast to the Feldstein-Horioka findings, a lower saving-investment coefficient … by integrating the balance of payments and national income accounting equations to show that domestic investment is …
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In this paper we re-evaluate the capital immobility hypothesis of Feldstein and Horioka (1980) for the case of the European Union and the Eurozone, based on long-run regressions. We employ the Long Run Derivative proposed by Fischer and Seater (1993) in order to examine capital mobility as a...
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