Investment : theories and analysis / M.C. Baddeley ; foreword by G. C. Harcourt.

Format:

Book

Author/Creator:

Baddeley, Michelle, 1965-

Language:

English

Subjects (All):

Investments.

Physical Description:

xiv, 258 pages : illustrations ; 25 cm

Place of Publication:

Houndmills, Basingstoke, Hampshire ; New York : Palgrave, 2003.

Summary:

Investment: Theories and Analysis is a comprehensive, unbiased account of fixed asset investment theory. Key theoretical ideas are surveyed, beginning with the early investment theories of Keynes and Fisher. The evolution of, and relationships between, subsequent developments of investment theory are analysed, including accelerator theories, Jorgenson's theory, putty-clay models, q theories, real options theories and Post Keynesian approaches. Different theories are tested using simple econometrics, and basic investment principles are applied to some topical macroeconomic issues, including 'New Economy' investment, investment and development, and housing investment cycles. Key concepts are clearly explained; mathematical details are separated into text boxes; basic econometric techniques are explained in an appendix; and technical terms are clarified in a glossary. Although the book is primarily aimed at advanced undergraduate, graduate and PhD students, it will be useful to all practising economists, including academics, economic consultants and policy-makers, interested in how and why businesses build up productive capacity.

Contents:

Part II Theoretical Issues

3 Intellectual ancestors: Irving Fisher and Maynard Keynes 23

4 Accelerator theory 47

5 Jorgenson's model of investment 57

6 The limitations of Jorgenson's model 66

7 Putty-clay models of investment 79

8 Adjustment costs and q theory 92

9 Uncertainty and investment 109

10 Post Keynesian analyses of investment 124

Part III Testing the Theories

11 Comparing Jorgenson's model and accelerator theory: evidence from the UK 139

12 Uncertainty in competing models of investment: evidence from the USA 149

Part IV Empirical Applications of Investment Principles

13 Computing investment in the New Economy: US evidence 163

14 Investment and development: a cross-sectional analysis 181

15 Residential investment: bubbles and crashes in the UK housing market, 1980-99 193

Statistical appendix: some basic econometric techniques 227.

Notes:

Includes bibliographical references (pages 235-248) and index.

ISBN:

0333915690

0333915704

OCLC:

50919993