The Global Side of the Investment-Saving Puzzle

In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major break...

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Main Authors:	Byrne, Joseph P., Fazio, Giorgio, Fiess, Norbert
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Macroeconomics: Consumption Saving Wealth E210 Capital Investment Capacity E220 Macroeconomics: Production E230
Online Access:	http://hdl.handle.net/10986/5481

id	okr-10986-5481
recordtype	oai_dc
spelling	okr-10986-54812021-04-23T14:02:22Z The Global Side of the Investment-Saving Puzzle Byrne, Joseph P. Fazio, Giorgio Fiess, Norbert Macroeconomics: Consumption Saving Wealth E210 Capital Investment Capacity E220 Macroeconomics: Production E230 In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major break with the existing literature, we find no evidence of a long-run relationship in the idiosyncratic components of saving and investment. We also find that the global components in saving and investments commove, indicating that they react to shocks of a global nature. 2012-03-30T07:33:02Z 2012-03-30T07:33:02Z 2009 Journal Article Journal of Money, Credit, and Banking 00222879 http://hdl.handle.net/10986/5481 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Macroeconomics: Consumption Saving Wealth E210 Capital Investment Capacity E220 Macroeconomics: Production E230
spellingShingle	Macroeconomics: Consumption Saving Wealth E210 Capital Investment Capacity E220 Macroeconomics: Production E230 Byrne, Joseph P. Fazio, Giorgio Fiess, Norbert The Global Side of the Investment-Saving Puzzle
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	In this paper, we reexamine the long-standing and puzzling correlation between national saving and investment in industrial countries. We apply an econometric methodology that allows us to separate idiosyncratic correlation at the country level from correlation at the global level. In a major break with the existing literature, we find no evidence of a long-run relationship in the idiosyncratic components of saving and investment. We also find that the global components in saving and investments commove, indicating that they react to shocks of a global nature.
format	Journal Article
author	Byrne, Joseph P. Fazio, Giorgio Fiess, Norbert
author_facet	Byrne, Joseph P. Fazio, Giorgio Fiess, Norbert
author_sort	Byrne, Joseph P.
title	The Global Side of the Investment-Saving Puzzle
title_short	The Global Side of the Investment-Saving Puzzle
title_full	The Global Side of the Investment-Saving Puzzle
title_fullStr	The Global Side of the Investment-Saving Puzzle
title_full_unstemmed	The Global Side of the Investment-Saving Puzzle
title_sort	global side of the investment-saving puzzle
publishDate	2012
url	http://hdl.handle.net/10986/5481
_version_	1764395207171768320

The Global Side of the Investment-Saving Puzzle

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