The Feldstein–Horioka puzzle revisited: Is the home-bias much less?

Autor:	George J. Georgopoulos, Walid Hejazi
Rok vydání:	2009
Předmět:	Macroeconomics Economics and Econometrics Capital (economics) Feldstein–Horioka puzzle Economics Oecd countries Capital flows Investment (macroeconomics) Finance
Zdroj:	International Review of Economics & Finance. 18:341-350
ISSN:	1059-0560
DOI:	10.1016/j.iref.2007.08.004
Popis:	The large correlation between domestic savings and investment is well documented and is known as the Feldstein–Horioka puzzle. We demonstrate that estimates of the FH coefficients using the standard framework are biased upward in the presence of highly positively correlated inward and outward capital flows. Using data for the 14 OECD countries, the analysis shows that the significant home bias documented by FH and others is also consistent with much higher levels of capital mobility when capital outflows and inflows are highly positively correlated. Taking account for these correlations reduces the estimated home bias somewhere between 45% and 90%.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::f6cea4767c1637832900a4680218962d https://doi.org/10.1016/j.iref.2007.08.004 Zobrazit plný text záznamu Full Text from ScienceDirect