The Feldstein-Horioka Paradox – evidence for Colombia during 1925-2011

This paper examines the relationship between national investment and saving in Colombia during the period 1925-2011 -- Consistent with Cardenas and Escobar (1998), an Error Correction Model is used to examine short and long run effects -- The results provide evidence that investment and saving are co-integrated during the study period -- The results for the co-integration vector, with and without structural breaks, indicate that capital mobility was low, which is consistent with the Feldstein – Horioka [1980] paradox -- The results imply that increases in domestic saving rates reduce the mobility of financial capital in Colombia

• Autores: Penagos Gómez, Óscar; Rojas Serrano, Héctor; Campo Robledo, Jacobo
• Fecha de publicación: 2015
• Institución: Universidad EAFIT
• Repositorio: Repositorio EAFIT
• Idioma: spa
• OAI Identifier: oai:repository.eafit.edu.co:10784/7804
• Acceso en línea: http://hdl.handle.net/10784/7804
• Palabra clave: C12; C22; F21; F41; Paradoja de Feldstein - Horioka; AHORRO E INVERSIÓN; MERCADO FINANCIERO; TASAS DE INTERÉS; MODELOS ECONÓMICOS; COINTEGRACIÓN; MODELOS ECONOMÉTRICOS; RENTAS NACIONALES - CONTABILIDAD; Saving and investment; Capital market; Interest rates; Economic models; Cointegration; Econometric models; National income - Accounting
• License: Copyright (c) 2015 Óscar Penagos Gómez, Héctor Rojas Serrano, Jacobo Campo Robledo