Working Paper

Human Capital and the Feldstein-Horioka Puzzle

Margarita Katsimi, Thomas Moutos
CESifo, Munich, 2007

CESifo Working Paper No. 1914

In this paper we reexamine the Feldstein-Horioka finding of limited international capital mobility by using a broader view (i.e., including human capital) of investment and saving. We find that the Feldstein-Horioka result is impervious to this change.

CESifo Category
Fiscal Policy, Macroeconomics and Growth
Keywords: human capital, current account, investment-saving correlation, capital mobility
JEL Classification: E200,F200,I200,Q400