Factors Affecting the Level of Real Investment

Abstract

Investment is typically classified in two categories: first, into investment in real assets, such as fixed or movable property, and, second, into investment in financial assets, such as increases in savings, increased building-society deposits, and purchases of stocks or shares. In this chapter we are concerned with those factors which determine or affect the level of the investment in real assets, for investment in financial assets by each economic sector (or the saving of each sector, as measured by flows of finance into financial institutions from that sector) has already been discussed in Chapter 2.