The Feldstein-Horioka hypothesis versus the long-run solvency constraint model: A critical assessment

• Type: Article in International Scientific Journal
• Date: 2008

Authors

Nell, KS (Author) Other; Luís Delfim Santos (Author) FEP

Journal

Title: Economics Letters

Vol. 98 No. 1

Pages: 66-70

ISSN: 0165-1765

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 11 Citations

Scopus - 15 Citations

Other information

Authenticus ID: P-004-33A

DOI: 10.1016/j.econlet.2007.04.007

Abstract (EN): This paper proposes an extended version of the long-run solvency constraint model developed by Coakley et al. [Coakley, J., Kulasi, F., Smith, R., 1996. Current Account Solvency and the Feldstein-Horioka Puzzle, Economic Journal 106, 620-627.] that provides a theoretical, and empirically testable, distinction from the Feldstein-Horioka hypothesis. The empirical application shows that the Feldstein-Horioka approach presents a useful, but incomplete, measure of capital mobility in 6 OECD countries.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 5