Obsolescence of Capital and Investment Spikes

Autor:	Boyan Jovanovic, Arthur Fishman
Rok vydání:	2021
Předmět:	Variable (computer science) Technological change Obsolescence Capital (economics) Economics Monetary economics Investment (macroeconomics) Fixed cost General Economics Econometrics and Finance
Zdroj:	American Economic Journal: Microeconomics. 13:135-171
ISSN:	1945-7685 1945-7669
DOI:	10.1257/mic.20190062
Popis:	The prospect of capital obsolescence inhibits investment. Investors thus become more optimistic when the obsolescence of their capital slows down. We propose a model with no fixed costs of investment, and random technological progress that induces obsolescence of capital in place. Spikes occur precisely when technological progress slows down. Moreover, the more variable the progress, the larger are the spikes. Cross-industry data show that where price of capital declines are more variable, investment spikes are larger. (JEL D21, D41, D42, G31, O31, O33)
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::8d7d42996b894d47e5f6ad182f3ed27c https://doi.org/10.1257/mic.20190062 Zobrazit plný text záznamu