Show simple item record

dc.rights.licenseIn Copyrighten_US
dc.creatorKisker, Maria Esther Hope
dc.date.accessioned2021-05-13T14:31:03Z
dc.date.available2021-05-13T14:31:03Z
dc.date.created2021
dc.identifier.urihttps://dspace.wlu.edu/handle/11021/35204
dc.descriptionThesis; [FULL-TEXT FREELY AVAILABLE ONLINE]en_US
dc.descriptionMaria Esther Hope Kisker is a member of the Class of 2021 of Washington and Lee University.en_US
dc.description.abstractFeldstein and Horioka (1980) argue that in a world of perfect capital mobility, if one regressed investment on savings, the coefficient wouldbe 0. When they found coefficients of between 0.87 and 0.91, they concluded that capital markets are not integrated. This surprising result was dubbed the "Feldstein-Horioka puzzle"and has been called one of the six major puzzles in international macroeconomics. Ford and Horioka (2016) purport to "solve" this puzzle by arguing that this high coefficient can be explained by frictions in either goods markets, financial markets, or both, because capital markets alone cannot facilitate net transfers of capital. I test the explanatory power of Ford and Horioka's proposed solution to the puzzle using observations dating back to 1870. I find that Ford and Horioka's explanation has strong explanatory power and connect their theory to the Mundell-Fleming model.en_US
dc.description.statementofresponsibilityMaria Kisker
dc.format.extent47 pagesen_US
dc.language.isoen_USen_US
dc.rightsThis material is made available for use in research, teaching, and private study, pursuant to U.S. Copyright law. The user assumes full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used should be fully credited with the source.en_US
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en_US
dc.subject.otherWashington and Lee University -- Honors in Economicsen_US
dc.titleDo Goods and Financial Market Frictions Explain the Feldstein-Horioka Puzzle? (thesis)en_US
dc.typeTexten_US
dc.rights.holderKisker, Maria
dc.subject.fastCapital market -- Mathematical modelsen_US
dc.subject.fastCapital movements -- Mathematical modelsen_US
dc.subject.fastSaving and investmenten_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record