Model
Digital Document
Publisher
Florida Atlantic University
Description
This thesis examines the determinants of that part of national gross
fixed investment which is undertaken by the private sector. Any
investment process is subject to a number of separate time lags,and as
a result, lagged explanatory variables were used in this study to
explain the past trends and the recent surge in capital spending. The
cashflow and q models distinguished themselves from other models as
relatively accurate descriptive of investment spending. It should be
noted, however, that the description of investment spending that
appears to have worked well in the past does not have to work so well
in the future because economic conditions change.
fixed investment which is undertaken by the private sector. Any
investment process is subject to a number of separate time lags,and as
a result, lagged explanatory variables were used in this study to
explain the past trends and the recent surge in capital spending. The
cashflow and q models distinguished themselves from other models as
relatively accurate descriptive of investment spending. It should be
noted, however, that the description of investment spending that
appears to have worked well in the past does not have to work so well
in the future because economic conditions change.
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