U. S. demand for different types of imported and domestic investment goods
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John J. Heim [1]
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[1] Rensselaer Polytechnic Institute
Rensselaer Polytechnic Institute
City of Troy, Estados Unidos
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- Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 10, Nº. 1, 2010, págs. 120-136
- Idioma: inglés
- Enlaces
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Resumen
Separate investment demand functions are developed and tested for (1) plant and equipment, (2) inventory, and (3) residential housing and compared for consistency with previous studies of total investment demand. U.S. 1960 - 2000 data are tested using 2SLS with heteroskedasticity controls. Data in first differences are used to reduce multicollinearity, non stationarity and autocorrelation. The models explain 90% of the variance in plant and equipment demand, 85% of housing demand and 67% of inventory demand. Plant, equipment and inventory investment appear driven by the accelerator effect, crowd out, depreciation, interest, and the exchange rate; residential construction by disposable income.
