We examine how inv estment in human capital affects the U.S. economy using a three-sector growth model. Investment in human capital is produced in a constant returns to scale Education sector that has capital, labor, student time and intermediates as inputs. The perfectly foresighted household determines investment in physical capital while the government determines the rate of Education invest...

We use a rich dataset of regional government expenditures for Japan during the 1990-2000 period to estimate from within-prefecture variation the multiplier of government investment and government consumption expenditures. Our main finding is that government spending did not have multipliers effects that are on average larger than one. Government investment had a positive and significant effect ...

The main aim of this paper is to investigate quantitatively the economic impacts of emissions stabilization scenarios with and without the inclusion of induced technological change (ITC). Improved technological innovations are triggered by increased R&D expenditures that advance energy efficiencies. Model results show that induced technological changes due to increased investment in R&D reduce ...

Using a sample of 56,144 annual property observations during 2000 – 2011 we analyze the determinants of capital expenditures and their sub-components at the property level when accounting for uncertainty. We argue that uncertainty impacts the relationships between interest rates, profitability and capital expenditures and that these relationships may differ not only by property type, but also b...

This paper empirically examines whether additional future fixed capital and R&D investment expenditures induce firms to accumulate cash reserves while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German companies, we find that firms make larger additions to cash holdings when they plan additional future R&D rather than fixed capital inv...

In this paper, employing VAR and factor analytic models with quarterly U.K. sectoral business investment data, we show that both common and sector–specific shocks play important roles in explaining business investment fluctuations. JEL: C32, E22, E32.

The purpose of this article is to analyze the macroeconomic impacts of fiscal policy in Iran using a new-Keynesian Dynamic Stochastic General Equilibrium (DSGE) model. The model takes into account distortionary taxations on wage, dividend, and consumption, while government expenditures are broken down into consumption of goods and services, and investment. The model is calibrated for Iran based...

Using detail published firm-level panel data from the Taiwan Economic Journal (TEJ), this study measures the effect of foreign ownership on wage dispersion. The estimation has been done by the Ordinary Least Squares (OLS) technique. It finds that current R&D and capital expenditures lead to decreased wage dispersion in response to a rise in the foreign investment in Taiwan ROC. However, the lag...