|Statement||Janice C. Eberly, Sergio Rebelo, Nicolas Vincent|
|Series||NBER working paper series -- working paper 16889, Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16889.|
|Contributions||Rebelo, Sergio, Vincent, Nicolas, National Bureau of Economic Research|
|The Physical Object|
|LC Control Number||2011656076|
This lagged-investment effect is empirically more important than the cash-flow and Q effects combined. We show that the specification of investment adjustment costs proposed by Christiano, Eichenbaum and Evans () predicts the presence of a lagged-investment effect and that a generalized version of their model is consistent with the behavior of firm-level data from Compustat. The best predictor of current investment at the firm level is lagged investment. This lagged-investment effect is empirically more important than the cash-flow and Q effects combined. This lagged-investment effect is empirically more important than the cash-flow and Q effects combined. We show that the specification of investment adjustment costs proposed by Christiano et al. () predicts the presence of a lagged-investment effect and that a generalized version of their model is consistent with the behavior of firm-level data from by: What Explains the Lagged Investment Effect? Janice C. Eberly, Sergio Rebelo, Nicolas Vincent. NBER Working Paper No. Issued in March , Revised in February NBER Program(s):Economic Fluctuations and Growth. The best predictor of current investment at the firm level is lagged by:
If you're looking for a general overview of economics and how different economic systems work, "Basic Economics" is your guide. Thomas Sowell's bestseller covers the basics of capitalism, socialism, feudalism, and the like with a concise explanation of the underlying principles of 's very much a common-sense approach to high-level economic concepts explained for the everyday person. Chapter 3: Distributed-Lag Models 37 To see the interpretation of the lag weights, consider two special cases: a temporary we change in x and a permanent change in e that x increases temporarily by one unit in period t, then returns to its original lower level for periods + 1 and all future periods.t For the temporary change, the time path of the changes in x looks like Figure the. Aside on Lagged Variables • Xt is the value of the variable in period t. • Xt-1 is the value of the variable in period t-1 or “lagged one period” or “lagged X”. Defining X and lagged X in a spreadsheet “X” “lagged X” X2 X1 X3 X2 X4 X3 XT XT-1 • Each column will have T-1 observations. • In general, when creating “X lagged q periods” you will have T-q observations. To fuel the debate further, lead indicators frequently require an investment to implement an initiative prior to a result being seen by a lag indicator. What has become clear over years of research is that a combination of lead and lag indicators result in enhanced business performance overall.
The value of consumption in period t-1, denoted C t-1, is a lagged endogenous variable since it is the lagged value of C t, which is an endogenous variable. If C t-1 appeared as an explanatory variable in equation (1), then the model would include a lagged endogenous variable. Search the world's most comprehensive index of full-text books. My library. Book value is the total value of a business' assets found on its balance sheet, and represents the value of all assets if liquidated. Market value is the worth of . Also, in the type of model used in those studies an increase in the rate of investment leads to an increase in the level of GDP, but in the long run has no effect on the rate of growth of GDP.