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In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to explaining the so-called Feldstein-Horioka puzzle. Using a gravity framework in an intertemporal context, we provide strong support for the hypothesis and we reconcile our results with...
Persistent link: https://www.econbiz.de/10003144697
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In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to explaining the so-called Feldstein-Horioka puzzle. Using a gravity framework in an intertemporal context, we provide strong support for the hypothesis and we reconcile our results with...
Persistent link: https://www.econbiz.de/10003120614
Persistent link: https://www.econbiz.de/10003388742
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number of new data sets, especially from World Bank initiatives. This new focus is particularly welcome for two reasons …
Persistent link: https://www.econbiz.de/10012922611
equity markets over a 19-year period, we measure the real-world trading costs and price impact function of a large trader. We …
Persistent link: https://www.econbiz.de/10012913119