In the early and mid-1990s, most economists and policymakers supported rapid capital account liberalization for emerging markets. Liberalization was expected to have widespread benefits. It was predicted to increase capital inflows, thereby financing investment and raising growth. Capital inflows—especially in the form of direct investment—would provide improved technology and management techni...

There is no greater gap between economic theory and econometric practice than that which characterizes the literature on business investment in fixed capital. According to the neoclassical theory of capital, as expounded for example by Irving Fisher, a production plan for the firm is chosen so as to maximize utility over time. Under certain well-known conditions this leads to maximization of th...

A recent literature has criticised the sensitivity of a firm’s investment to its own cash flow as an adequate measure of financing constraints. In this paper we develop a new method to detect the presence of financing constraints at firm level. We consider a structural dynamic model of investment with financing imperfections and with both fixed and variable capital. We solve the model and simul...

Abstract In this study , the relationship between investment components in sport and social capital is examined and the population in this research consists of 55 marketing consultant of Iranian soccer league sports sponsors. The research tool is also a questionnaire and for data analysis the statistical software spss and structural equation modeling method graphics Amos were used. In theoret...

Capital investment is a major concern for public hospitals. Relative to operating expenditures, it has been almost constant for 40 years, despite great changes in technology and patient throughputs. Research studies during the last decade suggest that over that time almost all investment has been on simply replacing existing assets. Per person, the total capital stock has actually declined. How...

Generations of students have learned from their professors of economics that productive resources are limited, and that, as a result, everything cannot be done at once. Producing more of any one good or service generally requires that less of some other(s) be produced; such is the venerable law of scarcity. Societies, unable to do everything, must somehow choose what things to do first; scarcit...

We consider a neoclassical interpretation of Germany and Japan’s rapid postwar growth that relies on a catch-up mechanism through capital accumulation where technology is embodied in new capital goods. Using a putty-clay model of production and investment, we are able to capture many of the key empirical properties of Germany and Japan’s postwar transitions, including persistently high but decl...

In the year that capital-poor countries open their stock markets to foreign investors, the growth rate of their typical firm’s capital stock exceeds its pre-liberalization mean by 4.1 percentage points. In each of the next three years the average growth rate of the capital stock for the 369 firms in the sample exceeds its pre-liberalization mean by 6.1 percentage points. However, there is no ev...