The Feldstein-Horioka Puzzle Revisited
Posted: 19 May 2000
There are 2 versions of this paper
The Feldstein-Horioka Puzzle Revisited
IPEA Working Paper No. 577
Number of pages: 6
Posted: 19 May 2000
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Abstract
This paper shows that the Feldsteins & Horioka (1980) test does not measure capital mobility, but just the variability between domestic and external savings. Furthermore, it concludes that the Coakley, Kulasi & Smith (1996) test for current account solvency, is a necessary, but not sufficient, condition for current account solvency.
JEL Classification: F21
Suggested Citation: Suggested Citation
Sachsida, Adolfo and Caetano, Marcelo Abi-Ramia, The Feldstein-Horioka Puzzle Revisited. Available at SSRN: https://ssrn.com/abstract=219548
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