Sousa Andrade, João (2007) Mobility of capital and external sustainability of the Portuguese economy. Economic analysis, 40 (3-4). pp. 8-27. ISSN 0013-3213
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Abstract
The Feldstein‐Horioka thesis was considered one of the greatest puzzles in economics.
Proposed to be a measure of international capital mobility, has known a process of immunisation to be conformed
to empirical evidence and respect econometric knowledge. We apply to the Portuguese economy the
proposed tests not only to know the degree of capital mobility but also to know if this economy is external
sustainable. The original ideas in the paper are our interpretation of the theoretical evolution of the F‐H thesis, the importance of analysing the random nature of the model of one equation and not only the retention
coefficient and the macro view given by an appropriate VAR model with investment and saving. We conclude
by the confirmation of important capital mobility in the Portuguese economy and the external unsustainability
of this economy.
| Item Type: | Article |
|---|---|
| Additional Information: | COBISS.ID=1024528272 |
| Uncontrolled Keywords: | Feldstein‐Horioka, Capital Mobility, Saving, Investment, Current Account |
| Research Department: | ?? H1 ?? |
| Depositing User: | Jelena Banovic |
| Date Deposited: | 27 Jan 2016 22:06 |
| Last Modified: | 27 Jan 2016 22:06 |
| URI: | http://35.240.28.64/id/eprint/284 |
| Author Links: |
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