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Alternative Concept of the Feldstein-Horioka Model under a Variable Parameter Assumption: a Study of the Czech Republic's Accession to the European Union
- Source :
- Politická ekonomie. 68:121-141
- Publication Year :
- 2020
- Publisher :
- Prague University of Economics and Business, 2020.
-
Abstract
- We investigate the impact of the Czech Republic's membership in the European Union on capital mobility. Our estimation of capital mobility is based on the alternative Feldstein-Horioka model. The model comes from intertemporal budget constraints with the additional assumption of a different data generation process. We propose an empirical framework to capture two different regimes in the vector error correction model. We show that the period 1996-2004 is composed of both regimes. The most important conclusion is that the period 1996-2004 is connected with a mix of both regimes. However, the period 2005-2017 comprises only one regime, which is connected with higher capital mobility. Therefore, capital mobility in the Czech Republic increased after 2004.
- Subjects :
- Czech
Economics and Econometrics
050208 finance
Important conclusion
Sociology and Political Science
05 social sciences
language.human_language
Error correction model
Capital (economics)
0502 economics and business
Econometrics
Economics
language
media_common.cataloged_instance
050207 economics
European union
Budget constraint
media_common
Subjects
Details
- ISSN :
- 23368225 and 00323233
- Volume :
- 68
- Database :
- OpenAIRE
- Journal :
- Politická ekonomie
- Accession number :
- edsair.doi...........8c88960853c5b2cc3b3855805578872c