Empirica

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The decline in investment shares is not caused by falling relative prices of capital: a note

Original Paper
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Abstract

Secularly declining GDP investment shares are often explained by the widespread fall in the relative price of investment goods. Granger non-causality tests applied to longer-term time series for a large number of industrial countries tend to reject that explanation.

Keywords

Relative prices of capital Investment shares Secular stagnation Granger causality 

JEL Classification

E22 O11 C32 

Notes

Acknowledgements

The author thanks two anonymous referees for helpful comments.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.The Vienna Institute for International Economic StudiesViennaAustria
  2. 2.Bielsko-Biala School of Finance and LawBielsko-BiałaPoland

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