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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...
Persistent link: https://www.econbiz.de/10012908620
; hypothesis), (ii) preference shocks (quot;savings glutquot; hypothesis), and (iii) investment shocks (quot;investment droughtquot … part of the variation in imbalances and financial market prices. We find that savings shocks and investment shocks explain … imbalances in the US and emerging Asia than a quot;savings glutquot …
Persistent link: https://www.econbiz.de/10012771616
We examine the relationship between investment and saving for a cross section of European countries before and during … the euro crisis. Investment is positively and significantly related to saving, and this relationship is stronger during …
Persistent link: https://www.econbiz.de/10013079084
empirical analysis showing that terms-of-trade and saving/investment behaviour seem to have driven the euro exchange rate over …
Persistent link: https://www.econbiz.de/10012446955
) preference shocks ("savings glutʺ hypothesis), and (iii) investment shocks ("investment droughtʺ hypothesis). In order to … imbalances and financial market prices. We find that savings shocks and investment shocks explain less of the variation. Hence, a … "savings glutʺ. …
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