Has the Rate of Investment Fallen?
AbstractAlthough the ratio of gross fixed nonresidential investment to GNP has decreased very little since the late 1960rs, the corresponding net investment ratio declined by nearly 40 percent between the second half of the 1960's and the second half of the 1970's. Four-fifths of this decline was due to the increased ratio of depreciation to GNP and only one-fifth to the decreased ratio of gross investment to GNP. The increased ratio of depreciation to GNP was in turn due in equal amounts to the higher ratio of capital to GNP and to the higher rate of depreciation. Nearly half of the higher depreciation rate was due to the increased rate of depreciation of equipment and nearly half to the increased share of equipment in the capital stock.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0679.
Date of creation: May 1981
Date of revision:
Publication status: published as Feldstein, Martin. "Has the Rate of Investment Fallen?" The Review of Economics and Statistics, Vol. 65, No. 1 (February 1983), pp. 144-149.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Michael Perelman, 2006. "The neglect of replacement investment in keynesian economics," Review of Political Economy, Taylor & Francis Journals, vol. 18(4), pages 547-559.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.