Search results for " Panel Nonstationarity"

showing 2 items of 2 documents

The Global Side of the Investments-Savings Puzzle

2008

In this paper we re-examine the long standing and puzzling correlation between national savings and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major break with the existing literature, we find no evidence of a long run relationship in the idiosyncratic components of savings and investment. We also find that the global components in savings and investments commove, indicating that they react to shocks of a global nature.

Savings Investment Feldstein-Horioka Puzzle Panel Nonstationarity Principal Components.jel:C31jel:F32jel:C33jel:F41
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The Global Side of the Investment-Saving Puzzle

2009

In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major break with the existing literature, we find no evidence of a long-run relationship in the idiosyncratic components of saving and investment. We also find that the global components in saving and investments commove, indicating that they react to shocks of a global nature.

MacroeconomicsConsumption [Macroeconomics]Economics and EconometricsSavingFeldstein–Horioka puzzlesaving • investment • Feldstein–Horioka puzzle • panel nonstationarity • principal componentsCapitalInvestment (macroeconomics)Country levelAccountingCapital (economics)Wealth E210Capacity E220EconomicsInvestmentFinanceProduction E230 [Macroeconomics]
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