The Under hypothesis during the globalization era

摘要

This paper investigates the impact of globalization on the Linder hypothesis. My theory-consistent general equilibrium estimates offer evidence that the Linder hypothesis has been phasing out during the globalization era. My results also refute the aggregation bias of the Linder effect but unveil that the time-span selection could justify its magnitude. (c) 2021 Elsevier B.V. All rights reserved.