We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational …-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour …" conditions, no information is acquired and no investment made. In "sweet" conditions, investment is made "blindly", i.e. without …

Key economic concepts of saving and investment are defined and discussed in this paper. It is shown that the equation … “saving=investment” is a fundamental fallacy of macroeconomics due to a confusion between real and financial variables, and … also between stock and flow variables. Economic growth is shown to be driven by investment, not by consumption as Keynes …

and significant. The study also found out that FDI (foreign direct investment), exports, inflation rate, and interest rate …

composition of equipment investment. We make threecontributions. First, we document strikingly large differences in investment …