The Fixed-capital and Housing Investment Functions

  • Ajit K. Dasgupta
  • A. J. Hagger


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.


Capital Stock Housing Service Investment Expenditure Internal Balance Housing Investment 
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Reading List

  1. Almon, Shirley, ‘The Distributed Lag between Capital Appropriations and Expenditures’, Econometrica (Jan 1965).Google Scholar
  2. de Leeuw, Frank, ‘The Demand for Capital Goods by Manufacturers.: A Study of Quarterly Time Series’, Econometrica (July 1962).Google Scholar
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  9. Muth, R. F., ‘The Demand for Non-Farm Housing’, in Harberger, A. C. (ed.), The Demand for Durable Goods (University of Chicago Press, 1960 ).Google Scholar

Copyright information

© Ajit K. Dasgupta and A. J. Hagger 1971

Authors and Affiliations

  • Ajit K. Dasgupta
    • 1
  • A. J. Hagger
    • 2
  1. 1.Sir George Williams UniversityMontrealCanada
  2. 2.University of TasmaniaAustralia

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