Byrne, J.P., Fazio, G. and Fiess, N. (2009) The global side of the investment-saving puzzle. Journal of Money, Credit and Banking, 41(5), pp. 1033-1040. (doi: 10.1111/j.1538-4616.2009.00244.x)
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Abstract
In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major break with the existing literature, we find no evidence of a long-run relationship in the idiosyncratic components of saving and investment. We also find that the global components in saving and investments commove, indicating that they react to shocks of a global nature.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Fiess, Dr Norbert and Byrne, Dr Joseph and Fazio, Dr Giorgio |
Authors: | Byrne, J.P., Fazio, G., and Fiess, N. |
Subjects: | H Social Sciences > HB Economic Theory |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Journal of Money, Credit and Banking |
ISSN: | 0022-2879 |
ISSN (Online): | 1538-4616 |
Published Online: | 16 July 2009 |
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