Explaining the investment boom of the 1990s

DC FieldValueLanguage
dc.contributor.authorWhelan, Karl-
dc.contributor.authorTevlin, Staceyen
dc.date.accessioned2008-06-05T16:15:53Z-
dc.date.available2008-06-05T16:15:53Z-
dc.date.copyrightCopyright 2003 by The Ohio State Universityen
dc.date.issued2003-02-
dc.identifier.citationJournal of Money, Credit and Bankingen
dc.identifier.issn0022-2879-
dc.identifier.urihttp://hdl.handle.net/10197/202-
dc.description.abstractReal equipment investment in the United States boomed in the 1990s, led by soaring investment in computers. We find that traditional aggregate econometric models completely fail to capture the magnitude of this growth—mainly because these models neglect to address two features that were crucial (and unique) to the 1990s' investment boom. First. the pace at which firms replace depreciated capital increased. Second, investment was more sensitive to the cost of capital. We document that these two features stem from the special behavior of investment in computers and therefore propose a disaggregated approach. This produces an econometric model that successfully explains the 1990s' equipment investment boom.en
dc.format.extent4304 bytes-
dc.format.mimetypeapplication/pdf-
dc.language.isoenen
dc.publisherBlackwell on behalf of the Ohio State University Pressen
dc.rights.uriPublisher's copyright policyen
dc.rights.urihttp://www.blackwellpublishing.com/permis.asp?ref=0022-2879&site=29en
dc.subjectCapitalen
dc.subjectComputersen
dc.subject.lcshCapital investments--United Statesen
dc.subject.lcshInvestments--Mathematical modelsen
dc.subject.lcshUnited States--Economic conditionsen
dc.titleExplaining the investment boom of the 1990sen
dc.typeJournal Articleen
dc.internal.authorurlKarl Whelan (web page)en
dc.internal.authorurlhttp://www.karlwhelan.com/en
dc.internal.authorcontactotherEmail: karl.whelan@ucd.ie; Tel: 353 1 716 8239en
dc.internal.authoridUCD0026en
dc.internal.availabilityFull text availableen
dc.internal.webversionshttp://www.jstor.org/stable/3649843-
dc.statusPeer revieweden
dc.identifier.volume35en
dc.identifier.issue1en
dc.identifier.startpage1en
dc.identifier.endpage22en
dc.neeo.contributorWhelan|Karl|aut|-
dc.neeo.contributorTevlin|Stacey|aut|-
item.grantfulltextopen-
item.fulltextWith Fulltext-
Appears in Collections:Economics Research Collection
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