IDEAS home Printed from https://ideas.repec.org/h/spr/fimchp/978-3-319-79075-6_8.html
   My bibliography  Save this book chapter

Explaining Weak Investment Growth After the Great Recession: A Macro-Panel Analysis

In: International Macroeconomics in the Wake of the Global Financial Crisis

Author

Listed:
  • Ines Buono

    (Directorate General for Economics, Statistics and Research, International Relations and Economics Directorate)

  • Sara Formai

    (Directorate General for Economics, Statistics and Research, Structural Economic Analysis)

Abstract

Business investment could be dampened by weak aggregate demand, the high cost of capital and macroeconomic uncertainty. The importance of each factor may vary both over time and across countries. In this chapter we use a panel of advanced economies to estimate a model of business investment based on the above mentioned factors. The main objective is to understand, through time-varying parameters estimations, how their relative importance has changed over time, in particular after the global financial crisis. The analysis reveals that all three factors matter for investment, and suggests a key role for countercyclical policies aiming at lowering interest rates, supporting aggregate demand, and restoring confidence on financial markets against unfavorable macroeconomic and financial developments, such as those that followed the global financial crisis and the debt crisis.

Suggested Citation

  • Ines Buono & Sara Formai, 2018. "Explaining Weak Investment Growth After the Great Recession: A Macro-Panel Analysis," Financial and Monetary Policy Studies, in: Laurent Ferrara & Ignacio Hernando & Daniela Marconi (ed.), International Macroeconomics in the Wake of the Global Financial Crisis, pages 129-155, Springer.
    • Handle: RePEc:spr:fimchp:978-3-319-79075-6_8
    DOI: 10.1007/978-3-319-79075-6_8
    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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ines Buono & Sara Formai, 2019. "Bank credit, liquidity and firm-level investment: are recessions different?," Temi di discussione (Economic working papers) 1239, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Keywords

    Investment; Uncertainty; Time-varying parameters;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    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:spr:fimchp:978-3-319-79075-6_8. 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.springer.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.