We demonstrate that the correlation of saving and investment is measured best by an error correction model (ECM …

-run investment-saving correlation follows directly from the economy's dynamic budget constraint and this does not depend on the … annual and quarterly post-war U.S. data, I find that investment and saving are cointegrated in levels as well as in rates … degree of international capital mobility. Therefore, unless the budget constraint is violated, the time series of investment …

This paper argues that the 40-year-old Feldstein-Horioka “puzzle” (i.e., in a regression of the domestic investment … rate on the domestic saving rate, the estimated coefficient is significantly larger than expected in a world with high … to their regression, one gets the accounting identity that relates the capital account, domestic investment, and domestic …

The finding of Feldstein and Horioka (1980) that domestic saving and domestic investment are highly correlated across … and that the Feldstein-Horioka Finding of domestic saving and domestic investment being highly correlated across countries …

, which is that even though global financial markets appear to be integrated, levels of saving and investment are correlated …

capital in the past. The conclusion is that within EMU domestic saving and investment will be less correlated than they were … of Feldstein and Horioka (FH) can limit the negative consequences of shocks affecting the saving capacity of an economy …

account balance, budget deficit and investment for the period 1990–2011. The analysis is conducted within the framework of … international capital markets. Yet, investment is found to have a significant impact on the current account balance …

Feldstein and Horioka (1980) argued that the correlation of saving and investment in a cross-section of countries may … as a reliable basis for such a test. The intertemporal budget constraint implies that each country`s saving and … investment should be cointegrated over time. Simulations show that the cross-section regressions used in the literature will …