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Private investment and macroeconomic adjustment : an overview

  • Serven, Luis
  • Solimano, Andres

This paper reviews current investment theories, recent models linking macroeconomic policies and private investment, and the effect of uncertainty and credibility on irreversible investment decisions. Empirical studies on the subject are also reviewed, and the general implications of this literature for the design of growth-oriented adjustment programs are discussed.

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File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1989/12/01/000009265_3960928132917/Rendered/PDF/multi_page.pdf
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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 339.

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Date of creation: 31 Dec 1989
Date of revision:
Handle: RePEc:wbk:wbrwps:339
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  1. Robert S. Pindyck, 1986. "Irreversible Investment, Capacity Choice, and the Value of the Firm," NBER Working Papers 1980, National Bureau of Economic Research, Inc.
  2. van Wijnbergen, Sweder, 1983. "Credit policy, inflation and growth in a financially repressed economy," Journal of Development Economics, Elsevier, vol. 13(1-2), pages 45-65.
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