The determinants of business investment: has capital spending been surprisingly low?

摘要: Many are worried that since 1980 capital investment by businesses has been lower than expected. Unusual circumstances, such as changes in savings patterns or business leverage, a credit crunch, widespread adoption of shorter-term outlook, have suggested culprits. To see whether spending indeed departed from its traditional determinants, this article compares during the 1980s and early 1990s with projections derived historical relationships between various measures economic activity. ; The results show not low for any surprising reasons; general, adhered fairly well to correspondence output, profits, cost capital. Investment equipment behaved models predicted, while nonresidential structures exceeded models’ forecasts eighties, large part result construction oil rigs commercial real estate boom. author concludes disappointing volume late is symptom slow growth, exceptional impediments.