The real estate bubble which burst in 2008 in the USA was not exclusively the result of “animal spirits”, “crowed madness” or “irrational exuberance”. It resulted primarily because of the specific policies that the government, the Federal Reserve Board, and the regulators pursued....

This paper investigates the effects of uncertainty emanating from technological improvements on the optimal lifetime of assets. In does so in a dynamic model in which: a) technological change increases continuously the productivity of producers' durables, b) potential competition induces firms...

Using data from the U. S. Bureau of Economic Analysis for the period 1947-2015, we estimate investment equations for three types of fixed assets and three policy instruments. In particular, we disaggregate investment into structures, equipment and intangibles, and the policy instruments into the...

The economic constitutions of Germany and Greece have resulted in the postwar period in two economies that are based on two vastly different philosophies. Germany has built a highly competitive, outward looking economy based essentially on the principles of the so-called “Social Market...

Greece went bankrupt in 2009 presumably because it run an exorbitant public deficit and had accumulated a huge public debt. However, in reality Greece went bankrupt because its model of social and economic organization has been surpassed by European and international developments. To avoid this...

Two alternative measures of demand adjusted capital input for the U.S. non-farm private business sector are derived and their differential impacts on the potential supply of output are compared to those obtained using the unadjusted index of capital input published by the Congressional Budget...

The objective in this paper is to highlight the complex linkages of capital input to potential output in the U.S. nonfarm private business sector. For this purpose the analytical framework used by the Congressional Budget Office (CBO) is adapted and re-estimated using data from the U.S. Bureau...

This paper investigates whether the monetary policy and the market structure have anything to do with the declining share of labor in the U.S in recent decades. For this purpose: (a) a dynamic general equilibrium model is constructed and used in conjunction with data over the 2000-2014 period to...

This paper derives a model of irregular or unplanned maintenance and repair outlays from an analytical framework based on rational economic behavior in which maintenance, utilization and service life decisions are appropriately integrated and estimates it with the help of data from 433...

We show that the “abandonment” model emphasized by researchers in capital budgeting and the “steady state” replacement model emphasized by economic theorists constitute sub-cases of a more general class of transitory replacement models in which the horizon of reinvestments is determined...