Stulz, René M. (contributor) - 2005
: Feldstein and Horioka (1980) showed that savings and investment
levels were very close for most countries. Their finding gave … birth to the Feldstein-Horioka
puzzle. As investors diversify internationally, a country’s saving, which depends on income … financial decision-making because of what I call the twin agency
problems. These twin agency problems arise because rulers of …