Based on the relation between investment and domestic saving proposed by Feldstein and Horioka (1980) to verify capital … implementing economic policies in Brazil. We then use the result of weak exogeneity test to identify a structural vector … autoregressive (SVAR) involving investment and saving in order to evaluate the effect of exogenous shocks through impulse response …

assumption of full capacity and based on an investment function, the GDP growth is inversely related to the propensity of … how to increase the saving rate and to allow the finance of a higher level of investment …