only a small fraction of national investment and is reasonably effective (as in the United States). But when government is … a major investor and is ineffective, the gap between capital and cumulative, depreciated investment effort (CUDIE) may … be enormous. A public sector steel mill may absorb billions as an investment, but if it cannot produce steel it has zero …

The cost of public investment is not the value of public capital. Unlike for private investors, there is no remotely … plausible behavioral model of the government as investor that suggests that every dollar the public sector spends as "investment … empirical literature on economic growth, which uses, at best, "cumulated, depreciated investment effort" (CUDIE), to estimate …

responsible for only a small fraction of national investment and is reasonably effective (as in the United States). But when … government is a major investor and is ineffective, the gap between capital and cumulative, depreciated investment effort (CUDIE …) may be enormous. A public sector steel mill may absorb billions as an investment, but if it cannot produce steel it has …

When investment decisions cannot be reversed and returns to capital are uncertain, the firm faces a higher user cost of …. This effect tends to increase the firm's capital stock. We show that a firm with irreversible investment may have a higher … investment. Furthermore, an increase in uncertainty can either increase or decrease the expected long-run capital stock under …