A Heterogeneous Dynamic Panel Approach to The Feldstein-Horioka Puzzle: Evidence from The European Union Countries

Autor/innen

  • şule gündüz-özgür Dokuz Eylul University

DOI:

https://doi.org/10.5281/zenodo.10474204

Abstract

This study investigates whether the Feldstein and Horioka puzzle concerning domestic saving-investment relationship is supported by the data of the European Union (EU) countries using Cross-Sectional Augmented Error Correction Model (CS-ECM), Cross-Sectional ARDL (CS-ARDL) and Cross-Sectional Augmented Distributed Lag Model (CS-DL), the recent heterogeneous dynamic panel approaches which are robust to cross-sectional dependence and slope heterogeneity. The findings of the study imply high capital mobility for the EU countries over 1995-2021, and thus reject the existence of the Feldstein-Horioka puzzle.

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Veröffentlicht

2023-12-31

Zitationsvorschlag

gündüz-özgür, şule. (2023). A Heterogeneous Dynamic Panel Approach to The Feldstein-Horioka Puzzle: Evidence from The European Union Countries. International Journal of Contemporary Economics and Administrative Sciences, 13(2), 554–568. https://doi.org/10.5281/zenodo.10474204