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Business Fixed Investment and the Recent Business Cycle in Japan

In: NBER Macroeconomics Annual 1996, Volume 11

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  • Nobuhiro Kiyotaki
  • Kenneth D. West

Abstract

To analyze business fixed investment in Japan, which has been unusually volatile in recent years, we develop and apply a loglinear flexible accelerator model. We find that movements in business fixed investment are consistent with movements in output and the tax- adjusted cost of capital, both on average during our entire 1961-94 sample and during the recent 1986-94 business cycle.
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Suggested Citation

  • Nobuhiro Kiyotaki & Kenneth D. West, 1996. "Business Fixed Investment and the Recent Business Cycle in Japan," NBER Chapters, in: NBER Macroeconomics Annual 1996, Volume 11, pages 277-344, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:11031
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    References listed on IDEAS

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