The Long-Run Relationship Between Saving And Investment Stylized Fact Or Fiction?
AbstractThe high correlation between domestic saving and investment rates in cross country regressions has been interpreted by some authors as evidence that world capital markets are not integrated. Our paper reexamines the long-run saving investment relationship across OECD countries using co integration methods. This approach enables us to provide evidence regarding this relationship at a desegregated level, that is, for each country separately. It also accounts for the non-stationary of the underlying tome series. In order to estimate long-run saving-investment correlation as well as to correct for simultaneous equation bias, for a non-linear single-equation error correlation model is used. The results qualify the conclusions of the previous studies by suggesting that saving and investment rates are not highly correlated in the long run for most OECD countries.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 262.
Date of creation: Dec 1993
Date of revision:
Contact details of provider:
Postal: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA
Web page: http://fmwww.bc.edu/EC/
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F Baum).
If references are entirely missing, you can add them using this form.