The Feldstein-Horioka Paradox �? Evidence for Colombia during 1925-2011

Ecos de Economía: A Latin American Journal of Applied Economics

Óscar Penagos Gómez¹  Jacobo Campo Robledo¹  Héctor Rojas Serrano¹ 

[1] Universidad Católica de Colombia

关键词: Feldstein �? Horioka puzzle;    cointegration;    Error Correction Model;    imperfect capital mobility;    Colombia;   

DOI  :  

学科分类：社会科学、人文和艺术（综合）

来源: Universidad Eafit

【 摘 要 】

This paper examines the relationship between national investment and saving in Colombia during the period 1925-2011.  Consistent with Cardenas and Escobar (1998), an Error Correction Model is used to examine short and long run effects.  The results provide evidence that investment and saving are co-integrated during the study period. The results for the co-integration vector, with and without structural breaks, indicate that capital mobility was low, which is consistent with the Feldstein �? Horioka [1980] paradox.  The results imply that increases in domestic saving rates reduce the mobility of financial capital in Colombia.

【 授权许可】

Unknown