Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5055260 | Economic Modelling | 2010 | 5 Pages |
Abstract
A systems GMM estimation method is used to estimate the Feldstein-Horioka equation from 1960 to 2007 with a panel of 13 OECD countries. It is found that the Feldstein-Horioka puzzle exists in a weaker form with a much reduced saving retention coefficient. The Bretton Woods agreement in particular seems to have weakened the Feldstein-Horioka puzzle by significantly improving international capital mobility. In comparison the Maastricht agreement seems to have improved capital mobility only by a small magnitude. The Blundell and Bond systems GMM method and structural break tests of Mancini-Griffoli and Pauwels are used in this paper.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
B. Bhaskara Rao, Artur Tamazian, Saten Kumar,