This paper investigates the determinants of real interest rates at world and country level. The starting point is the idea that real interest rates re°ect the interaction of desired saving and planned investment, using the framework developed by Barro and Sala-i-Martin (1990) and Barro (1992). The paper updates previous results and extends the analysis to study long real interest rates. We anal...

In this paper, according to economics of real estate and macro-control theory, combine with the characteristics of the real estate market, macro-control of the real estate market is studied. After giving the dynamic model of three-dimensional nonlinear differential equations based on the total number of houses on the real estate business, the government’s averages housing investment funds and t...

The theory of capital investment is the cornerstone of the theory of macroeconomic dynamics, and the question of whether or not the agents involved in the investment decision have the information needed to make individually and collectively optimal choices is central to capital accumulation theory. New Classical and neoclassical theory assume that they do. Keynesian and Post Keynesian theory as...

We study initial cuts of models of weak two-sorted Bounded Arithmetics with respect to the strength of their theories and show that these theories are stronger than the original one. More explicitly we will see that polylogarithmic cuts of models of V are models of VNC by formalizing a proof of Nepomnjascij’s Theorem in such cuts. This is a strengthening of a result by Paris and Wilkie. We can ...

Asymptotic cones of metric spaces were first invented by Gromov. They are metric spaces which capture the ’large-scale structure’ of the underlying metric space. Later, van den Dries and Wilkie gave a more general construction of asymptotic cones using ultrapowers. Certain facts about asymptotic cones, like the completeness of the metric space, now follow rather easily from saturation propertie...

We examine the investment behavior of a panel of German manufacturing ...rms for the time period from 1992 to 2000. Our methodology is structural and has several steps: First, we identify the pro...tability shocks that move investment demand at the ...rm level. Then, we specify an array of adjustment costs and capital market imperfections possibly in‡uencing optimal ...rm investment response to...

Empirical evidence documents a tight link between aggregate and firm-level investment and corporate credit spreads. Moreover, it has been shown that credit spreads largely reflect a compensation for bearing macroeconoimc risks. We use a tractable model with recursive preferences and time varying macroeoconomic risk to investigate the link between aggregate risk and corporate policies in a produ...

Abstract: This paper provides an investment decisionmaking criterion under uncertainty using real options methodology to evaluate if an investment should be made immediately, cautiously, deferred (wait-and-watch), or foregone. We develop a decision-making index d, which is equal to the expectation of net present value (NPV) normalized by its standard deviation. Under a lognormal assumption of t...

This paper analyzes problems in Inner Mongolia’s industrial development investment, illustrating the importance of reasonable optimization of investment structure. According to the real conditions of investment and output in Inner Mongolia, this paper advances the direction of general industrial investment structure optimization, and points out the investment optimization measures in perspectiv...