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Comment on partisan conflict and private investment

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  • Gomes, Joao F.

Abstract

Private nonresidential investment contracted sharply during the Great Recession in most advanced economies and remains well below its pre-2008 trend. While weakness in business investment naturally accounts for a short term drop in the aggregate demand for goods and services, a persistent decline in new capital formation is also bound to have long lasting effects on an economy’s ability to produce.

Suggested Citation

  • Gomes, Joao F., 2018. "Comment on partisan conflict and private investment," Journal of Monetary Economics, Elsevier, vol. 93(C), pages 132-134.
    • Handle: RePEc:eee:moneco:v:93:y:2018:i:c:p:132-134
    DOI: 10.1016/j.jmoneco.2017.10.003
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    References listed on IDEAS

    as
    1. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    2. Hartman, Richard, 1972. "The effects of price and cost uncertainty on investment," Journal of Economic Theory, Elsevier, vol. 5(2), pages 258-266, October.
    3. Harold L. Cole & Lee E. Ohanian, 2004. "New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 779-816, August.
    4. Abel, Andrew B, 1983. "Optimal Investment under Uncertainty," American Economic Review, American Economic Association, vol. 73(1), pages 228-233, March.
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    Cited by:

    1. Gerald Carlino & Nicholas Zarra & Robert Inman & Thorsten Drautzburg, 2019. "Fiscal Policy in Monetary Unions: State Partisanship and its Macroeconomic Effects," 2019 Meeting Papers 434, Society for Economic Dynamics.

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    More about this item

    Keywords

    Investment; Uncertainty; Partisan conflict;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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