consumption and investment expenditures, as well as their broadly defined components, are examined. We also test for effects of … money on long run reallocations of consumption expenditures among durables, nondurables, and services. The time series …This paper tests for long run effects of money on real expenditures in the U.S. over the 1959-2002 period. Real …

SAVING DOES NOT EQUAL INVESTMENT John Maynard Keynes confused economists and politicians all over the world when he … wrote, “Saving is necessary to equal investment” together with a few equations to confirm his idea and finally concluding … that S = I. There have been repeated discussions about how saving can equal investment, accidentally or with certainty. We …

This paper studies whether and how capital investment and economic freedom jointly endogenize economic growth. The … the crucial role of both domestic and foreign capital investment and economic freedom for rapid growth. Countries that … improve economic freedom and that bolster capital investment tend to experience faster growth. The domestic investment rate …

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 …

Social learning models of investment provide an interesting alternative explanation for sudden changes in investment … the investment suspension decisions of other agents. In this paper, I test the main predictions of their model using a … unique database of investment projects undertaken by semiconductor plants. I find that firms that are installing a …

This paper addresses the question if there are differences between time patterns in the volatility of investment across … different industrial sectors. A competitive partial-equilibrium model with quadratic adjustment costs in investment and a GARCH … demand shock is developed to predict aggregate investment in a sector. It is shown that under the assumptions made in the …