ISSN 1300-1868
 

Original Research (Original Article) 


Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach

Duygu YOLCU KARADAM.

Abstract
In this paper, we examine domestic saving-investment relationship for a panel data of 40 countries consisting both industrial and emerging economies for the 1960-2013 period. To this end, we employ the recent advanced panel data estimation procedures which consider potential heterogeneity and cross-sectional dependency, to estimate short-run and long-run coefficients. We find that the correlation between saving and investment is higher in the long run than in the short run consistent with inter-temporal budget constraint. Furthermore, in contrast to the findings of previous studies, our results suggest smaller saving retention coefficient and thus higher capital mobility for industrial countries relative to developing economies.

Key words: Feldstein-Horioka Puzzle, Saving, Investment, Common Correlated Effects, Panel Data. JEL Classification: F32, C23



Ortak Küresel Şoklar Altında Feldstein-Horioka Bilmecesi: Heterojen Bir Panel Veri Yaklaşımı

Ozet
Bu çalışmada, yerli tasarruf-yatırım ilişkisi, 1960-2013 dönemi ve hem gelişmiş hem de yükselen ülkelerden oluşan 40 ülkelik bir panel veri seti için yeniden incelenmiştir. Bu amaçla, kısa dönem ve uzun dönem katsayılarını tahmin etmek için, potensiyel heterojenlik ve kesitlerarası bağımlılığı göz önüne alan, son dönem ileri panel veri tahmin yöntemleri kullanılmıştır. Zamanlararası bütçe kısıtı ile tutarlı olarak, tasarruflar ve yatırımlar arasındaki uzun dönem korelasyonun kısa döneme göre daha yüksek olduğu bulunmuştur. Ek olarak, gelişmiş ülkelerin tasarruf katsayısının gelişmekte olan ülkelerden daha düşük olduğunu bulan önceki çalışmaların aksine, gelişmiş ülkelerin daha fazla uluslararası sermaye hareketliliğine sahip olduğu ortaya konulmuştur.

Anahtar Kelimeler: Feldstein-Horioka Bilmecesi, Tasarruf, Yatırım, Ortak Bağıntılı Etkiler, Panel Veri. JEL Sınıflaması: F32, C23


 
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How to Cite this Article
Pubmed Style

Duygu YOLCU KARADAM. Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach. Ekonomik Yaklasim. 2015; 26(97): 73-89. doi:10.5455/ey.35803


Web Style

Duygu YOLCU KARADAM. Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach. http://www.ekonomikyaklasim.org/?mno=187961 [Access: March 28, 2020]. doi:10.5455/ey.35803


AMA (American Medical Association) Style

Duygu YOLCU KARADAM. Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach. Ekonomik Yaklasim. 2015; 26(97): 73-89. doi:10.5455/ey.35803



Vancouver/ICMJE Style

Duygu YOLCU KARADAM. Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach. Ekonomik Yaklasim. (2015), [cited March 28, 2020]; 26(97): 73-89. doi:10.5455/ey.35803



Harvard Style

Duygu YOLCU KARADAM (2015) Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach. Ekonomik Yaklasim, 26 (97), 73-89. doi:10.5455/ey.35803



Turabian Style

Duygu YOLCU KARADAM. 2015. Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach. Ekonomik Yaklasim, 26 (97), 73-89. doi:10.5455/ey.35803



Chicago Style

Duygu YOLCU KARADAM. "Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach." Ekonomik Yaklasim 26 (2015), 73-89. doi:10.5455/ey.35803



MLA (The Modern Language Association) Style

Duygu YOLCU KARADAM. "Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach." Ekonomik Yaklasim 26.97 (2015), 73-89. Print. doi:10.5455/ey.35803



APA (American Psychological Association) Style

Duygu YOLCU KARADAM (2015) Feldstein-Horioka Puzzle under Common Global Shocks: A Heterogenous Panel Data Approach. Ekonomik Yaklasim, 26 (97), 73-89. doi:10.5455/ey.35803





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