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E-book
Author Jansen, W. J.

Title The Feldstein-Horioka test of international capital mobility : Is it feasible? / prepared by W. Jos Jansen
Published [Washington, D.C.] : International Monetary Fund, Research Dept., [1996]
©1996
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Description 1 online resource (iii, 23 pages) : illustrations
Series IMF working paper ; WP/96/100
IMF working paper ; WP/96/100
Summary Annotation Feldstein and Horioka (1980) argued that the correlation of saving and investment in a cross-section of countries may provide a test of global capital mobility. This paper argues that neither the long-run nor the short-run correlation can serve as a reliable basis for such a test. the intertemporal budget constraint implies that each countrys saving and investment should be cointegrated over time. Simulations show that the cross-section regressions used in the literature will produce correlations that strongly tend towards one, regardless of the degree of capital mobility. Although the short-run correlation is not affected by the intertemporal budget constraint, the empirical analysis shows it is primarily a country-specific business cycle fact
Bibliography Includes bibliographical references (pages 20-23)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Capital movements -- Econometric models.
Saving and investment -- Econometric models.
Form Electronic book
Author International Monetary Fund. Research Department.
ISBN 145520501X
9781455205011