Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup
We re-examine two complementary views of international capital mobility using data for 25 OECD countries over the period 1970-2011. Estimation of the original Feldstein-Horioka and Sachs' equations provides mixed evidence of capital mobility, though we do not detect a significant bias towards f...
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2014
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Acceso en línea: | https://repository.urosario.edu.co/handle/10336/22174 https://doi.org/10.1016/j.iref.2014.03.002 |
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ir-10336-221742022-05-02T12:37:20Z Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup Holmes, Mark J. Otero, Jesus Capital mobility Current account Feldstein-Horioka Heterogeneous panel We re-examine two complementary views of international capital mobility using data for 25 OECD countries over the period 1970-2011. Estimation of the original Feldstein-Horioka and Sachs' equations provides mixed evidence of capital mobility, though we do not detect a significant bias towards finding in favour of capital immobility in using time-averaged data. However, potential bias in cross-sectional estimation motivates us to examine the data as a heterogeneous panel which allows us to control for the effects of cross-sectional dependence and endogeneity. In addressing the Feldstein-Horioka puzzle, application of the CCEMG estimator of Pesaran (2006) to the Feldstein-Horioka and Sachs' equations points towards greater (though not perfect) capital mobility than hitherto found. © 2014 Elsevier Inc. 2014 2020-05-25T23:55:41Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 10590560 https://repository.urosario.edu.co/handle/10336/22174 https://doi.org/10.1016/j.iref.2014.03.002 eng info:eu-repo/semantics/openAccess application/pdf Elsevier Inc. instname:Universidad del Rosario |
institution |
EdocUR - Universidad del Rosario |
collection |
DSpace |
language |
Inglés (English) |
topic |
Capital mobility Current account Feldstein-Horioka Heterogeneous panel |
spellingShingle |
Capital mobility Current account Feldstein-Horioka Heterogeneous panel Holmes, Mark J. Otero, Jesus Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup |
description |
We re-examine two complementary views of international capital mobility using data for 25 OECD countries over the period 1970-2011. Estimation of the original Feldstein-Horioka and Sachs' equations provides mixed evidence of capital mobility, though we do not detect a significant bias towards finding in favour of capital immobility in using time-averaged data. However, potential bias in cross-sectional estimation motivates us to examine the data as a heterogeneous panel which allows us to control for the effects of cross-sectional dependence and endogeneity. In addressing the Feldstein-Horioka puzzle, application of the CCEMG estimator of Pesaran (2006) to the Feldstein-Horioka and Sachs' equations points towards greater (though not perfect) capital mobility than hitherto found. © 2014 Elsevier Inc. |
format |
Artículo (Article) |
author |
Holmes, Mark J. Otero, Jesus |
author_facet |
Holmes, Mark J. Otero, Jesus |
author_sort |
Holmes, Mark J. |
title |
Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup |
title_short |
Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup |
title_full |
Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup |
title_fullStr |
Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup |
title_full_unstemmed |
Re-examining the Feldstein-Horioka and Sachs' views of capital mobility: A heterogeneous panel setup |
title_sort |
re-examining the feldstein-horioka and sachs' views of capital mobility: a heterogeneous panel setup |
publisher |
Elsevier Inc. |
publishDate |
2014 |
url |
https://repository.urosario.edu.co/handle/10336/22174 https://doi.org/10.1016/j.iref.2014.03.002 |
_version_ |
1740172246849159168 |
score |
12,131701 |