Intermediate Macroeconomics Lecture 18
Intermediate Macroeconomics Lecture 18
Investment . Business fixed investment Equipment and structures that businesses buy to use in production . Residential investment New housing that people buy to live in and that landlords buy to rent out Inventory investment Goods that business put aside in storage, including materials and supplies, work in process, and finished goods
Investment ❖ Business fixed investment Equipment and structures that businesses buy to use in production ❖ Residential investment New housing that people buy to live in and that landlords buy to rent out ❖ Inventory investment Goods that business put aside in storage, including materials and supplies, work in process, and finished goods
Investment Component of I (3Q, 2004, US) nonresidential i in structures nonresidential I in equipment and softwarel 日 residential i a change in inventories
Investment Component of I (3Q, 2004, US) nonresidential I in structures nonresidential I in equipment and software residential I change in inventories
Investment Component of I (China, 2001) 口建筑安装工程 口设备工具器具购置 口其他费用 口存货投资变动
Investment Component of I (China, 2001) 建筑安装工程 设备工具器具购置 其他费用 存货投资变动
Business fixed Investment Neoclassical model of investment >I. MPK.i-rate, tax rules Production firms rental firms
Business Fixed Investment ❖ Neoclassical model of investment ➢ I, MPK, i-rate, tax rules ➢ Production firms & rental firms