Savings and Investments in the OECD Economies, 1970-2007
Stefano Fachin (University of Rome La Sapienza)
Riccardo Faini CEIS Seminar
Riccardo Faini CEIS Seminars
When
Friday, February 5, 2010 h. 14:30-16:30
Where
Sala del Consiglio - Aula C
Description
In this paper we examine the long-run savings-investments puzzle in a panel of 18 OECD economies over the period 1970-2007 both individually, using system and conditional modelling, and as a panel, using a new bootstrap test for panel cointegration robust to short- and long-run dependence across units. Individual modelling provides only weak support to the hypothesis of
a savings-investment relationship, while the results of the panel test suggest no relationship to be present in the panel as a whole.
Keywords: Feldstein-Horioka, Savings, Invstments, OECD, Panel Cointegration, Stationary Bootstrap.
JEL codes: C23, C15, E2