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Output growth, investment and the real interest rate in long run evidence tend to be negatively affected by inflation …. Inflation then decreases the investment rate, and still decreases both output growth and real interest up to some moderately … high rate of inflation, above which increasingly low investment finally causes capital to fall relative to labor, and the …
Persistent link: https://www.econbiz.de/10010494408
Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation …. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …
Persistent link: https://www.econbiz.de/10010288827
Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical...
Persistent link: https://www.econbiz.de/10010295289
Persistent link: https://www.econbiz.de/10011696432
Theoretical models point at various channels of the impact of inflation on corporate investment. This article attempts … corporate investment and inflation on the sample of 21 OECD countries in the years 1960-2005. The obtained negative relationship … this relationship: the marginal effect on corporate investment is higher at inflation rates between 3 and 5.5 per cent …
Persistent link: https://www.econbiz.de/10010312014
rising marginal cost of investment, (ii) production of human capital with endogenous growth and (iii) an inflation tax cash … inflation and Tobin's q; a normalized market price of capital. This stylized fact is explained within a dynamic stochastic …-in-advance economy. The baseline endogenous growth model matches the US inflation and q long term correlation, while comparable exogenous …
Persistent link: https://www.econbiz.de/10010494429
accumulation and inflation with endogenous fertility, i.e. endogenous population growth. The model establishes an inverse relation …
Persistent link: https://www.econbiz.de/10011608490
coefficient, monetary authority is not completely successfull in stabilizing the volatility of output, nominal rate and inflation … rate only by acting on inflation targeting. Moreover, a too strong concerns towards inflation relatively to output … translates into a lower ability to control inflation volatility, together with a strong policy reaction with respect to an …
Persistent link: https://www.econbiz.de/10011651406
Persistent link: https://www.econbiz.de/10014306477
The relationship between land investment and tenure security is usually tested in land scarce but peaceful areas. This … article examines instead the effects of land abundance and war for investment and tenure security. The paper demonstrates that … war enhances land abundance. This implies that farm size for the analysis of land investment and tenure security. The …
Persistent link: https://www.econbiz.de/10010260692