Theory tells us that output, the capital stock and the user cost of capital are related. From the capital accumulation identity, it also follows that the capital stock and investment have a long-run proportional relationship. The dynamic structure thus implies a multi-cointegrating framework, in...

This paper studies the interactions between uncertainty, investment and economic growth. Utilizing panel data for a sample of 59 industrial and developing countries between 1966 and 1992, we estimate reduced form equations to explore the possible effects of uncertainty on economic growth and...

Motivated by a number of puzzles about the recent behaviour of business investment in the United Kingdom (including the boom in the late 1990s and the prolonged weakness thereafter), this article brings together some of the main results of recent research on investment undertaken by the Bank and...