TY - JOUR
T1 - The saving-retention coefficient and country-size
T2 - The Feldstein-Horioka puzzle reconsidered
AU - Ho, Tsung Wu
PY - 2003/9
Y1 - 2003/9
N2 - Baxter and Crucini [Am. Economic Rev. 83 (1993) 416] propose a country-size argument to explain the Feldstein-Horioka puzzle. This paper augments the empirical literature by examining the threshold effect of country-size, measured by relative GNP share, on the magnitude of saving-retention coefficient. Evidence from a panel of 23 OECD countries indicates that the saving-retention coefficient increase as the relative GNP share becomes larger, which substantially supports the country-size argument.
AB - Baxter and Crucini [Am. Economic Rev. 83 (1993) 416] propose a country-size argument to explain the Feldstein-Horioka puzzle. This paper augments the empirical literature by examining the threshold effect of country-size, measured by relative GNP share, on the magnitude of saving-retention coefficient. Evidence from a panel of 23 OECD countries indicates that the saving-retention coefficient increase as the relative GNP share becomes larger, which substantially supports the country-size argument.
KW - Country-size
KW - Saving-retention coefficients
KW - Thresholds
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U2 - 10.1016/S0164-0704(03)00044-2
DO - 10.1016/S0164-0704(03)00044-2
M3 - Article
AN - SCOPUS:0346272907
SN - 0164-0704
VL - 25
SP - 387
EP - 396
JO - Journal of Macroeconomics
JF - Journal of Macroeconomics
IS - 3
ER -