Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Are saving and investment cointegrated?
T2 - An ARDL bounds testing approach
AU - De Vita, Glauco
AU - Abbott, Andrew James
PY - 2002/10/31
Y1 - 2002/10/31
N2 - Using the newly developed ARDL bounds testing procedure, we find that, as implied by the intertemporal budget constraint, U.S. saving and investment rates cointegrate in all sample periods considered. Our results also show that the saving–investment correlation weakens after 1971, suggesting that the Feldstein–Horioka approach provides an at least partially informative measure of capital mobility.
AB - Using the newly developed ARDL bounds testing procedure, we find that, as implied by the intertemporal budget constraint, U.S. saving and investment rates cointegrate in all sample periods considered. Our results also show that the saving–investment correlation weakens after 1971, suggesting that the Feldstein–Horioka approach provides an at least partially informative measure of capital mobility.
KW - Capital mobility
KW - Cointegration
KW - Feldstein–Horioka puzzle
KW - Saving–investment
U2 - 10.1016/S0165-1765(02)00139-8
DO - 10.1016/S0165-1765(02)00139-8
M3 - Journal article
VL - 77
SP - 293
EP - 299
JO - Economics Letters
JF - Economics Letters
SN - 0165-1765
IS - 2
ER -