In this paper, we embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine replacement in a general equilibrium model based on putty-clay technology. We show that the combination of log-normally distributed idiosyncratic productivity uncertainty and Leontief utilization choice yields an aggregate production function that is easily charact...

This note corrects the analysis given in Woodford (2003, chap. 5) of a model with staggered pricing and endogenous capital accumulation, to take account of an error in the original calculations noted by Sveen and Weinke (2004). The main source of complication in this analysis is the assumption that the producers of individual differentiated goods (that adjust their prices at different dates) in...

AK growth models predict that permanent changes in government policies affecting investment rates should lead to permanent changes in a country’s GDP growth. Charles Jones (1995) sees no evidence for this prediction in data for 15 OECD countries after World War II: rates of investment, especially for equipment, have risen while GDP growth rates have not. This article provides evidence supportin...

External capital inflow on a massive scale into the emerging market economies is a very significant phenomenon of recent years. Making distinctions between direct investment, real and financial, and portfolio investment and incorporating crowding in or crowding out effects we derive some results about the impact of higher inflow on output, investment and the exchange rare. A formula is suggeste...

We examine the problem of a risk-neutral investor who has to choose among two alternative projects of different scales under output price uncertainty. We show that as soon as investment in the smaller scale project is sometimes optimal, the optimal investment strategy is not a trigger strategy and the optimal investment region is dichotomous. Whenever the investor has the opportunity to switch ...

This paper talks about the measurement of efficiency and productivity of non-life insurance firms in India. This study is focused on twelve private non-life insurance firms and four public sector non-life insurance firms of India in the period 2008-09 to 2012-13. Data Envelopment Analysis (DEA) coupled with Malmquist productivity Index is used in measuring the efficiency as well as productivity...

where the constant A,, = Co + I0 + Go represents the sum of the minimum consumption, the “autonomous” investment and the fixed government spending in period n, and Y, is the output--GNP or national income-in period n. The net investment amount in the same period is given as Z, = ac( Y,I Y,-,). The constant c E (0, 1) represents Keynes ’ “marginal propensity to consume” or the MPC, while the coe...

Laporan keuangan berperan penting dalam menyediakan informasi mengenai kinerja perusahaan. Kinerja perusahaan yang baik menarik minat investor dan dapat meningkatkan pengembalian investor. Namun, tidak semua mampu menghasilkan akhirnya mendorong melakukan manipulasi pada laporan keuangan. Penelitian ini dilakukan dengan tujuan mendeteksi memanfaatkan rasio investasi berupa laba per saham, divid...