Estimation of the investment function for the Republic of Macedonia
Investment is one of the crucial macroeconomic variables - it adds to the capital stock and thus determines the long term production capacity in the economy. Investment, also, is one of the channels through which macroeconomic policies, monetary and fiscal policy, can affect the real economy. This paper presents an estimate of the investment function for the Republic of Macedonia, based on the Johansen cointegration technique. The results obtained show that, according to the Keynesian accelerator theory, investments are driven by changes in the aggregate demand. In addition, as the neoclassical model predicts, the cost of employing additional unit of capital exhibits significant influence on the investment decisions' of the firms, but only in the short run. The obtained results are broadly in line with the ones found in different studies and with the one used in previous work on this topic for Macedonia.
|Date of creation:||Sep 2008|
|Contact details of provider:|| Postal: P.O. Box 401, Blvd. Kuzman Josifovski Pitu 1, Skopje 1000|
Phone: + 389 2 108 108
Fax: + 389 2 108 357
Web page: http://www.nbrm.mk
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gábor Pula, 2003. "Capital Stock Estimation in Hungary: A Brief Description of Methodolgy and Results," MNB Working Papers 2003/7, Magyar Nemzeti Bank (Central Bank of Hungary).
- Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
- Juan Zalduendo & Catia Batista, 2004. "Can the IMF's Medium-Term Growth Projections Be Improved?," IMF Working Papers 04/203, International Monetary Fund.
- Tatiana Fic & Marcin Kolasa & Adam Kot & Karol Murawski & Michal Rubaszek & Magdalena Tarnicka, 2005. "ECMOD Model of the Polish Economy," NBP Working Papers 36, Narodowy Bank Polski, Economic Research Department.
- Abbas Valadkhani, 2004. "What determines private investment in Iran?," International Journal of Social Economics, Emerald Group Publishing, vol. 31(5/6), pages 457-468, May.
- Gomme, Paul & Rupert, Peter, 2007.
"Theory, measurement and calibration of macroeconomic models,"
Journal of Monetary Economics,
Elsevier, vol. 54(2), pages 460-497, March.
- Paul Gomme & Peter Rupert, 2005. "Theory, measurement, and calibration of macroeconomic models," Working Paper 0505, Federal Reserve Bank of Cleveland.
When requesting a correction, please mention this item's handle: RePEc:mae:wpaper:2008-04. 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: (Jovica Mitik)
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.