Logo
Munich Personal RePEc Archive

Savings and investments in the OECD, 1970-2007: a panel cointegration test with breaks

Di Iorio, Francesca and Fachin, Stefano (2010): Savings and investments in the OECD, 1970-2007: a panel cointegration test with breaks.

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_26969.pdf]
Preview
PDF
MPRA_paper_26969.pdf

Download (634kB) | Preview

Abstract

In this paper we test for the existence of a long-run relationship between investment and savings (the Feldstein-Horioka puzzle) in a panel of 18 OECD countries, 1970-2007, allowing for heterogenous breaks in the coefficients. For this purpose we develop a bootstrap panel cointegration test with breaks robust to cross-section dependence. The test suggests that, even allowing for breaks in the countries where capital control regulations changed in the sample period, there is no evidence of an investment-savings long-run relationship for the panel as a whole.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.