search query: @indexterm capital investment / total: 460
reference: 13 / 460
| Author: | Groth, C. |
| Title: | Quantifying UK capital adjustment costs |
| Journal: | Economica
2008 : MAY, VOL. 75:298, p. 310-325 |
| Index terms: | accounting capital investment service industries United Kingdom USA |
| Language: | eng |
| Abstract: | Based on manufacturing and service industry data from 1970 to 2000, this paper estimates U.K. capital adjustment costs (here as: a-cts). There is found evidence of significant a-cts., with a 1 percent increase in investment reducing value added by 0.05 percent. This implies an elasticity of investment as to Tobin's q of 2.5, and a convergence time for capital of 12 years. A-cts. are suggested to have caused half of the slowdown in U.K. total factor productivity (TFP) growth during the 2nd half of the 1990s. |
SCIMA