Driver, Ciaran, Karakitsos, Elias and Bunyard, Mark (1999) 'Investment Performance, Capital-Widening and Economic Policy.' Economic Issues, 4 (1). pp. 93-100.
Abstract
Abstract: Fixed investment as a share of GDP has declined over a long period in many G10 countries. The aim of the paper is to provide a theoretical framework for explaining this. The model emphasises the negative effect on investment of uncertainty about the effects of a policy response to an output gap. When government contracts demand to close an output gap that is the result of an initial decline in fixed investment, it tends to exert a cumulative depressive effect on capacity and growth. Since this involves a dynamic process the mechanisms at work are illustrated through a theoretical simulation approach.
| Item Type: | Journal Article |
|---|---|
| SOAS Departments & Centres: | Departments and Subunits > School of Finance & Management Legacy Departments > Faculty of Law and Social Sciences > School of Finance and Management |
| ISSN: | 13637029 |
| Date Deposited: | 15 Aug 2015 16:32 |
| URI: | https://eprints.soas.ac.uk/id/eprint/20542 |
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