The Feldstein-Horioka paradox: A selective survey of the literature

The paper provides a selective survey of the literature on the Feldstein-Horioka paradox. The observed high correlation between national savings and domestic investment emerges as a robust empirical regularity. If this regularity is to be attributed to low capital mobility (due to government interventions or market imperfections) or other factors (such as immobility of goods, shocks or intertemporal budget constraints) cannot be resolved. The empirical evidence on the relative importance of the possible factors is too sketchy. Excluding government interventions, the possible impact of market imperfections in causing saving-investment corrrelations has hardly been investigated so far.

Determinants of exports in the G7-countries

Real effective exchange rates and economic activity in trading partner countries have a considerable impact on real exports of the G7-countries. Using an errorcorrection framework we find that the short-run and the long-run effects differ substantially between the countries. The relative importance of both influences is demonstrated in a simulation with standardized shocks. For five countries, the effects are more or less the same; in Japan, however, the exchange rate effect dominates the effect stemming from foreign economic activity, the opposite is true for France. Finally, exchange rate volatility does not systematically affect export growth in the majority of the countries.

The Feldstein-Horioka paradox: A selective survey of the literature

The paper provides a selective survey of the literature on the Feldstein-Horioka paradox. The observed high correlation between national savings and domestic investment emerges as a robust empirical regularity. If this regularity is to be attributed to low capital mobility (due to government interventions or market imperfections) or other factors (such as immobility of goods, shocks or intertemporal budget constraints) cannot be resolved. The empirical evidence on the relative importance of the possible factors is too sketchy. Excluding government interventions, the possible impact of market imperfections in causing saving-investment corrrelations has hardly been investigated so far

Determinants of exports in the G7-countries

Real effective exchange rates and economic activity in trading partner countries have a considerable impact on real exports of the G7-countries. Using an errorcorrection framework we find that the short-run and the long-run effects differ substantially between the countries. The relative importance of both influences is demonstrated in a simulation with standardized shocks. For five countries, the effects are more or less the same; in Japan, however, the exchange rate effect dominates the effect stemming from foreign economic activity, the opposite is true for France. Finally, exchange rate volatility does not systematically affect export growth in the majority of the countries

Wie mobil ist Kapital? Empirische Evidenz für Deutschland

The extent of capital mobility between the Bundesländer of West-Germany between 1975-1990 is investigated. The investigation is based on the approach first chosen by Feldstein and Horioka who estimated the correlation between national saving and Investment rates. It is shown that the correlation of regional saving and Investment rates in Germany decreased substantially over time reflecting an increase in capital mobility. Furthermore, it is found that the government influences the correlation between saving and investment. Whereas in the time period 1975-1982 the correlation for the economy as a whole was higher than for the private sector, the opposite result is obtained for the period 1983-1990. A possible explanation could be the shift frorn a supply to a demand side policy that occured during the period under consideration

Wie mobil ist Kapital? Empirische Evidenz für Deutschland

The extent of capital mobility between the Bundesländer of West-Germany between 1975-1990 is investigated. The investigation is based on the approach first chosen by Feldstein and Horioka who estimated the correlation between national saving and Investment rates. It is shown that the correlation of regional saving and Investment rates in Germany decreased substantially over time reflecting an increase in capital mobility. Furthermore, it is found that the government influences the correlation between saving and investment. Whereas in the time period 1975-1982 the correlation for the economy as a whole was higher than for the private sector, the opposite result is obtained for the period 1983-1990. A possible explanation could be the shift frorn a supply to a demand side policy that occured during the period under consideration.

Reading Retreats: Faculty Efforts to Revive Their Reading Program

In the United States, education and particular Reading education has undergone serious scrutiny over the past twenty years. From the Nation at Risk (1983) publication to the No Child Left Behind Act (2001), reading educators, who work directly with pre-service teachers, have had to confront several important challenges including establishing high academic standards for all students, developing and enhancing teachers’ knowledge of the latest and most effective educational practices and initiating systematic reform within the school system so that new curriculum frameworks are aligned to key state educational policy.The following paper describes how faculty in a reading program at a large metropolitan university along the southeastern coast of the United States reflected on current practice and discovered a means of maintaining their professional integrity while at the same time using professional development opportunities to create a reading program which is current, dynamic and effectively able to prepare future teachers who thrive in an environment of change.