Business Fixed Investment and the Recent Business Cycle in Japan
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.
|Date of creation:||Apr 1996|
|Date of revision:|
|Publication status:||published as Business Fixed Investment and the Recent Business Cycle in Japan , Nobuhiro Kiyotaki, Kenneth D. West. in NBER Macroeconomics Annual 1996, Volume 11 , Bernanke and Rotemberg. 1996|
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