EconStor >
Freie Universität Berlin >
Fachbereich Wirtschaftswissenschaft, Freie Universität Berlin >
Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin >

Please use this identifier to cite or link to this item:
Title:The Lucas Paradox and the quality of institutions: then and now PDF Logo
Authors:Schularick, Moritz
Steger, Thomas M.
Issue Date:2008
Series/Report no.:Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin 2008/3
Abstract:In the first era of financial globalization (1880-1914), global capital market integration led to substantial net capital movements from rich to poor economies. The historical experience stands in contrast to the contemporary globalization where gross capital mobility is equally high, but did not incite a substantial transfer of savings from rich to poor economies. Using data for the historical and modern periods we extend Lucas’ (1990) original model and show that differences in institutional quality between rich and poor countries can account for the sharply divergent patterns of international capital movements.
Subjects:capital market integration
financial globalization
economic history
Document Type:Working Paper
Appears in Collections:Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin

Files in This Item:
File Description SizeFormat
56007509X.PDF99.69 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.