El patrón inversor de los establecimientos industriales de la Comunidad de Madrid
In this paper we study the investment behavior of manufacturing firms using data from the Encuesta Económica al Sector Industrial compiled by the Statistical Office of Madrid's Regional Government. In the first part of the paper, we describe firms' investment behavior. We find that investment decisions are discontinuous, and tend to cluster in certain years. Null or low investment episodes are frequent, whereas high investment episodes are rare but quantitatively important. We also find evidence on replacement activity, as vintage capital models predict. First, the estimation of a hazard function indicates that the probability of finding a new investment spike is higher as time elapsed from the last spike passes. This result may be due to the obsolescence of capital as it ages. Second, we are interested in measuring the effect that high investment periods have on firm's productivity, in an attempt to find evidence of technical progress embodied on physical capital. We find some evidence of the positive effect of investment spikes on the firm's labor productivity.
When requesting a correction, please mention this item's handle: RePEc:fda:fdaddt:99-19. 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: (Carmen Arias)
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.