Time-to-Build and Investment
The Review of Economics and Statistics
2000
The paper investigates the effect of the time-to-build technology on investment dynamics. It explains the positive autocorrelation of investment by showing that investment is serially correlated once the time-to-build technology is taken into account. The paper also shows that the time-to-build technology can explain a substantial portion of the variation in aggregate investment data. Using estimated marginal Q, the paper illustrates that investment responds asymmetrically to different levels of Q (a fact in favor of the irreversibility argument).
- DOI
- 10.1162/003465300558786
- Volume
- 82 (2)
- Pages
- 273-282
- Language
- en
- Export
- BibTeX
- Sources
- crossref openalex