IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-27610-9_6.html
   My bibliography  Save this book chapter

Long-Term Risks to Investment Recovery

In: The Post ‘Great Recession’ US Economy

Author

Listed:
  • Philip Arestis
  • Elias Karakitsos

Abstract

Real gross private domestic investment, or simply investment, consists of residential and non-residential investment. The latter is usually referred to as business investment and includes office buildings, factory plants, equipment and inventories. Business investment plays a key role in business cycle analysis; it also holds the key to growth as it affects the capital stock in the economy and therefore capacity as well as long-term multi-factor productivity. A higher investment rate increases the capital stock in the economy and lifts (multi-factor) productivity. This increases the rate of growth of potential output and enables the economy to grow faster without producing higher inflation. Countries with fast growth have a high savings ratio and therefore a high investment to GDP ratio; and vice versa. In this chapter we analyse the long-term factors that affect investment.

Suggested Citation

  • Philip Arestis & Elias Karakitsos, 2010. "Long-Term Risks to Investment Recovery," Palgrave Macmillan Books, in: The Post ‘Great Recession’ US Economy, chapter 6, pages 120-149, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27610-9_6
    DOI: 10.1057/9780230276109_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-27610-9_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.