This paper estimates a dynamic empirical model for Japan’s business fixed investment. A multivariate cointegration analysis of Japan’s time series data over the past two decades shows that the term spread (the difference between long-term and short-term interest rates) and various diffusion...

Abstract This paper estimates a dynamic empirical model for Japan's business fixed investment. A multivariate cointegration analysis of Japan's time series data over the past two decades shows that the term spread (the difference between long-term and short-term interest rates) and various...