…MPI (marginal propensity to invest) goes down to 15.6% and capital investment drops to $2442 b. Consumption would not drop but investment would. UPDATE: It makes sense to hold labor’s…

…left to explain. fitted values from the regression just above The main deviation is higher than predicted investment from around 1995 through 2008 then lower than predicted investment since the…

…horrible for two reasons: low government purchases of goods and services (G) and low housing investment. Consumption, fixed non residential investment, and inventory investment have recovered normally. Net exports didn’t…

…it sure looks as if non residential fixed capital investment as a percent of GDP expressed (nrfinvgdp) and nominal interest rates are positively correlated, because high non residential fixed capital…

…an “investment incentive,” “location incentive,” or “location subsidy.” I define all three of these terms as “a subsidy to affect the location of investment.” What, then, is a “subsidy”? To…

Via Daily Kos, we learn that Wikileaks has released the investment chapter of the Trans-Pacific Partnership (TPP). This is a critical chapter, as it was in the North American Free…

…put it another way, low current investment is almost entirely low housing investment and has nothing to do with corporate bonds or returns on capital. The question becomes why aren’t…

…the evidence that stock prices have essentially no effect on investment decisions is overwhelming. The failure of the Q theory of investment makes the permanent income hypothesis and the Lucas…

…percentage of gross private investment to GDP tends downward. I tweeted this graph to Miles Kimball who is in favor of negative nominal rates. Negative rates would tend to move…

Video series for “Rethinking Investment Incentives” As regular readers will recall, I contributed to the Columbia Center for Sustainable Investment’s book, Rethinking Investment Incentives: Trends and Policy Options (Columbia University…