Co-integration inference in the value–profit relation and investment models

In this paper we make use of the co-integration property in a present value model to obtain long run specifications for investment within a neoclassical framework with adjustment cost technology. These attractive theoretical models are implemented for eleven OECD countries.

Saved in:
Bibliographic Details
Published in:Economics letters 2000-12, Vol.69 (3), p.289-297
Main Author: Verschueren, Frédéric
Format: Article
Language:English
Subjects:
Adjustment costs
Co-integration
Economic behaviour
Investment
Investment decision
Modelling
Neoclassical economics
Present value model
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this paper we make use of the co-integration property in a present value model to obtain long run specifications for investment within a neoclassical framework with adjustment cost technology. These attractive theoretical models are implemented for eleven OECD countries.
ISSN:0165-1765
1873-7374
DOI:10.1016/S0165-1765(00)00289-5