Zanghieri, Paolo; Banerjee, Anindya - 2006
We use a panel of 14 European countries to take a fresh look at the so-called Feldstein-Horioka puzzle on the high … answers remain by and large elusive. Since we argue that the savings and investment series in our panel are integrated of … order one, we use the recently developed theory of panel unit roots and cointegration to look at the relationship between …