Progresso tecnico, concorrenza e decisioni di investimento
In this paper investment decisions are analysed separating the motivations for investment from the criterion adopted for assessing their profitability. Firstly, the motivations behind the investments are retraced to the innovative activity of the firms and to the competition interpreted as a process whereby firms retain their competitive position versus existing other firms and potential newcomers. The longterm determinants that appears important for understanding the investment process are, on the one hand, innovations and the creation of new markets and, on the other, the expectations of demand. A second plane of analysis concerns the relation between investments and expected profitability, which cannot be less than the real rate of interest plus a risk premium. After examining the possible effects on investments of a variation, taken as permanent, of the interest rate, it is argued that no systematic relation can be derived between variations of the real interest rate and investments. In the theoretical context of this analysis, indeed, while a change, taken as permanent, in the rate of interest does not affect the basic determinants of the investment, it does alter the condition of minimum profitability for all firms and sets off a mechanism of competition on the market for the products, through which the rate of profit adjusts to the real rate of interest plus a risk premium.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:mul:jb33yl:doi:10.1428/1834:y:1997:i:1:p:17-40. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.