The initial theories of investment have emphasized the role of reduction of interest rate and increase in output for encouraging private investment. But there are ample grounds for doubting these theories. As a result, researchers have recently emphasized the importance of uncertainty in...

The theoretical literature suggests that there should be a bi-directional relationship between investment and mergers. This essay uses homogenous and heterogeneous panel Granger causality tests to examine this hypothesis. The paper finds that in high-income countries, cross-border mergers tend...

The present work studies to the saving and international trade as determinants of the investment in the Latin-American countries during 1951-2000 using data panel technique. The empirical results show that the differentials of rates of investment, between the Latin American countries, are...

In the realm of macroeconomic theory, is well established that investment decisions play an instrumental role in the determination of the level of output and employment; nevertheless, little progress has been made in relation to the theoretical aspects of these decisions. This paper, inspired by...

This paper studies how the socialpolitical and judicial factors have affected private investment in Venezuela and Latin America for the period 1995-2003 by means of panel data analysis. In the case of Venezuela, there is evidence that the fall in the investment rate in Venezuela has been caused...

This paper studies the relationship between social-political and judicial factors and private investment in Latin America during 1995-2003 by means of panel data analysis. The empirical evidence suggests that investment rate differentials, not only among Latin American countries but also with...

In this paper we analyse the consequences of changes in the consumption patterns on unemployment through an intermediate channel via investment. Specifically, after presenting our theoretical framework, we build a dynamic econometric multiequational model, in which we estimate a consumption...

We present an application of the Dynamic Programming (DP) and of the Maximum Principle (MP) to solve an optimization over time when the production function is linear in the stock of capital (Ak model). Two views of capital are considered. In one, which is embraced by the great majority of...

This paper analyzes and compares two alternative policies of determining the service life and replacement demand for vintage equipment under embodied technological change. The policies are the infinite-horizon replacement and the transitory replacement ending with scrapping. The corresponding...

This paper develops and analyzes a growth model that consists of complementary long-lived and short-lived vintage-specific capital. As a result of the existence of complementary capital that is vintage compatible but has different longevity, the model generates two distinct investment patterns:...