Advertisement

Investment pp 139-148 | Cite as

Comparing Jorgenson’s model and accelerator theory: evidence from the UK

  • M. C. Baddeley

Abstract

A number of models of investment have been presented in the previous chapters including the neo-classical, accelerator and q theories and Post Keynesian analyses of investment. So far, the econometric results from the application of orthodox models to real-world data has revealed a wide range of results although there is empirical agreement about a negative correlation between aggregate investment and measures of uncertainty. The aims of this chapter are first to provide a further test of the different approaches to investment analysis, focusing in particular on the estimation of accelerator and neo-classical models and second, to illustrate how basic econometric techniques can be used to test competing theoretical hypotheses.

Keywords

Capital Stock Capacity Utilization User Cost Accelerator Model Chapter Summary 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© M.C. Baddeley 2003

Authors and Affiliations

  • M. C. Baddeley
    • 1
  1. 1.Gonville and Caius CollegeCambridgeUK

Personalised recommendations