Unlike the prediction of a frictionless open economy model, long-term average savings and investment rates are highly correlated across countries—a puzzle first identified by Feldstein and Horioka (1980). We quantitatively investigate the impact of two types of financial frictions on this...

This paper studies the famous Feldstein and Horioka finding, which is a high correla-tion between long period averages of savings rates and investment rates across countries. We first confirm the Feldstein-Horioka finding with a more recent data set, and then show that a calibrated complete...

The underlying components of protection motivation theory (PMT; Rogers 1983) areexplored through choice experiment-based analysis within a random utility framework, toaccount for some of the motivational, cognitive, and affective processes that likely affectceliacs’ propensity to use a novel...