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Based on the relation between investment and domestic saving proposed by Feldstein and Horioka (1980) to verify capital … autoregressive (SVAR) involving investment and saving in order to evaluate the effect of exogenous shocks through impulse response … showed that investment is sensitive to contemporaneous innovation on saving and this effect lasts for a long time. Regarding …
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effect on investment, and a (fairly) small significant negative effect on domestic savings. The aggregate result is thus an … considered, a small positive and statistically significant investment effect is found, together with a small negative effect on … domestic savings. We conclude that in Asia and Latin America, aid is a substitute to domestic savings, but has a net positive …
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holds for the microeconomic response of some of the most important economic variables, such as investment, labor demand, and … actual response to shocks is less than half as fast as the estimated response. For investment, labor demand and prices, the …, even after aggregating investment across all establishments in U.S. manufacturing, the estimate of its speed of adjustment …
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