economic variable and has turned on the microeconomic and macroeconomic consequences of investment irreversibilities. Thus the … other interesting findings, at the microeconomic level it turns out that the de-mand for replacement investment is not … cannot obtain consistent aggregates of capital stock and replacement investment. …

procedures, to varying degrees, ignore that (i) gross fixed capital formation does not equal investment, (ii) investment does not … equal the value of fixed assets newly created through investment, (iii) depreciation is an accounting measure that bears no …