The Feldstein-Horioka Puzzle Revisited: An “European-Regional” Perspective
AbstractThe purpose of this paper consists in assessing the extent of financial integration in European Union using the Feldstein-Horioka criterion. More precisely, we test the cross-correlation of savings and investment rates across European Union regions, using NUTS 2 data coming from Eurostat regional database, over the period 1995-2000. Several important outcomes are reported by our article: if financial integration seems to be realized across all the regions forming European Union, the Feldstein-Horioka criterion keeps emphasizing differences between small and big countries, the later being less integrated at the regional level. Furthermore, the testing of the relationship between savings and investment in consistent sub-groups of regions (designed according to geographical, historical or economic criteria) emphasize that financial integration can be higher at the regional level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp763.
Date of creation: 01 Mar 2000
Date of revision:
Contact details of provider:
Postal: 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109
Phone: 734 763-5020
Fax: 734 763 5850
Web page: http://www.wdi.umich.edu
More information through EDIRC
regional savings; investment; capital market; capital flows;
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Marek Dabrowski, 2006.
"Rethinking balance-of-payments constraints in a globalized world,"
CASE Network Studies and Analyses
0330, CASE-Center for Social and Economic Research.
- Dabrowski, Marek, 2006. "Rethinking balance-of-payments constraints in a globalized world," MPRA Paper 11962, University Library of Munich, Germany.
- Peter Debaere & Ufuk Demiroglu, 2008.
"International Saving, Investment and Trade,"
Open Economies Review,
Springer, vol. 19(5), pages 613-627, November.
- Ricardo Bebczuk & Klaus Schmidt-Hebbel, 2010.
"Revisiting the Feldstein-Horioka Puzzle: An institutional sector view,"
Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 69-104, January-D.
- Bebczuk, Ricardo & Schmidt-Hebbel, Klaus, 2006. "Revisiting the Feldstein-Horioka Puzzle: An Institutional Sector View," MPRA Paper 1802, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurie Gendron).
If references are entirely missing, you can add them using this form.