To analyze business fixed investment in Japan, which has been unusually volatile in recent years, we develop and apply a log-linear flexible accelerator model. We find that movements in business fixed investment are consistent with movements in output and the tax-adjusted cost of capital, both on average during our entire 1961-1994 sample and during the recent 1986-1994 business cycle.
|Original language||English (US)|
|Journal||NBER Macroeconomics Annual|
|State||Published - 1996|
All Science Journal Classification (ASJC) codes
- Economics and Econometrics