Investment, Vol. 1: Capital Theory and Investment Behavior

Book Description:

"Dale Jorgenson . . . is preeminently the master of the territory between economics and statistics, where both have to be applied to the study of concrete probl ems. His prolonged exploration of the determinants of investment spending, whatever its ultimate lessons, will certainly long stand as one of the finest example s in the marriage of theory and practice in economics." -- John Bates Clark Medal citation by the American Economic Association

These studies of the cost of capital will inspire and guide policy-makers who share the goal of making the allocation of capital in a market economy more efficient. Volume 1 presents pioneering studies of the cost of capital as a determinant of investment expenditures. The cost of capital summarizes the future consequences of investment essential for current decisions. This concept has become an indispensible tool for studying the dynamics of investment behavior. Both macroeconome tric models and intertemporal general equilibrium models have employed the cost of capital as a determinant of short- and long-term investment expenditures. More on Investment