Herrmann, Sabine; Kleinert, Jörn - Deutsche Bundesbank - 2014
This paper examines the Lucas Paradox and the Allocation Puzzle of international capital flows referring to a panel … favour of the Lucas Paradox and the Allocation Puzzle. Rather, in line with neoclassical expectations, net capital flows are … particularly pronounced in intra-euro area capital flows and after the introduction of the common currency. If we control for the …