We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Australian Business Investment: A New Look at the Neoclassical Approach.
- Authors
Kohli, Ulrich; Ryan, Christopher J.
- Abstract
This paper attempts to reconcile neoclassical theory with Australian investment data. We argue that, by focusing almost exclusively on the demand for capital services, neoclassical investment theory neglects two related decisions: the decision to own the existing capital stock, and the decision to produce new capital goods. We propose a simple model of investment behaviour that integrates production decisions with portfolio decisions. Careful consideration is given to the determination of the price of capital, the rental price of capital, and the return on capital The model is estimated by FIML, and a number of simulation results are reported.
- Subjects
AUSTRALIA; INVESTMENTS; CAPITAL stock
- Publication
Economic Record, 1986, Vol 62, Issue 179, p451
- ISSN
0013-0249
- Publication type
Article
- DOI
10.1111/j.1475-4932.1986.tb00910.x