Abstract
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) |
|---|---|
| Pages (from-to) | X5-323 |
| Journal | NBER Macroeconomics Annual |
| Volume | 11 |
| DOIs | |
| State | Published - 1996 |
| Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics