The Housing sector can be considered both the exchange of intermediate goods and the investment goods for the manufacturing sectors. The housing sector is the buyer of intermediate goods such as brick, cement, iron etc from one side, and uses the investment goods such as crane etc from other side. Furthermore, it uses the labour force. Thus, the housing sector has three types of buying which in...

Theory tells us that output, the capital stock and the user cost of capital are cointegrated. From the capital accumulation identity, it also follows that the capital stock and investment have a long-run proportional relationship. This has been used to justify the estimation of investment equations embodying a long-run relation between investment and output, rather than between the capital stoc...

In 1995, De Vos introduced a thermoeconomical analysis for heat engines working in finite time. This analysis was made by the maximization of a benefit function defined as the ratio of the power output and the total costs which are associated to the investment and the fuel consumption. The De Vos methodology has been applied to several heat engine models working at different regimes of performa...

This paper analyses the impact of using different macroeconomic variables and output decompositions to estimate the euro area output gap. We estimate twelve multivariate unobserved components models with phase shifts being allowed between individual cyclical components. As output decomposition plays a central role in all multivariate models, three different output decompositions are utilised; t...

We study the impact of nancing constraints on investment and output dynamics, in a continuous time setting with output a linear function of capital. Decline of net worth reduces investment and, if rms can rent capital to unconstrained outside investors, can create a `net worth trap' with both investment and output falling below normal levels for long time periods. We provide a detailed account ...

This paper tests the Feldstein-Horioka (1980) hypothesis that the investment-to-output ratio moves one-for-one with the saving-to-output ratio, using annual time-series data on …fteen European countries (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom) and the econometric framework developed by...