The Feldstein-Horioka Puzzle Revisited

Posted: 19 May 2000

See all articles by Adolfo Sachsida

Adolfo Sachsida

Institute for Applied Economic Research (IPEA); Institute of Applied Economic Research (IPEA)

Marcelo Abi-Ramia Caetano

Institute of Applied Economic Research (IPEA); Previdencia Social

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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

Sachsida, Adolfo and Caetano, Marcelo Abi-Ramia, The Feldstein-Horioka Puzzle Revisited. Available at SSRN: https://ssrn.com/abstract=219548

Adolfo Sachsida (Contact Author)

Institute for Applied Economic Research (IPEA) ( email )

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Marcelo Abi-Ramia Caetano

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

Previdencia Social ( email )

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