The Fixed-capital and Housing Investment Functions
In this chapter we shall develop a fixed-capital investment function and a housing investment function. This will enable us to treat two of the components of I which appear in relationship (3.11), namely I gf (desired real gross fixed-capital investment) and I gh (desired real gross housing investment), as jointly determined variables rather than as data and thereby to remedy, to some extent, the weaknesses which remain in Model III. We shall turn to the remaining components of I (I ri and I ci ) in the next chapter.
KeywordsCapital Stock Housing Service Investment Expenditure Internal Balance Housing Investment
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