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Olaolu R Olayeni
''Analyzing the Feldstein-Horioka puzzle in continuous wavelet transform''
( 2013, Vol. 33 No.4 )
We use a novel time-frequency approach to estimate wavelet-based correlation and retention coefficients of the well-known Feldstein-Horioka (1980) puzzle for a cross-section of 39 countries over the period 1960-2012. Our approach reveals many interesting issues in the connection between investment and saving rates among these countries and distinguishes between the short and the long run fluctuations in correlation and retention coefficients.
Keywords: Feldstein-Horioka puzzle, retention coefficient, continuous wavelet transform
JEL: C1 - Econometric and Statistical Methods: General
B4 - Economic Methodology: General
Manuscript Received : Aug 20 2013 Manuscript Accepted : Dec 23 2013

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