Economics at your fingertips  

Explaining the recent slump in investment: the role of expected demand and uncertainty

Matthieu Bussiere (), Laurent Ferrara () and Juliana Milovich ()

Rue de la Banque, 2017, issue 44

Abstract: The weakness in business investment in several advanced economies since the global financial crisis has prompted debate over the main drivers behind this trend and the possible policy responses, if any. This Rue de la Banque summarises an empirical investigation of the main determinants of business investment since 1995 for a panel of twenty-two advanced economies. In the short term, while measures of capital cost seem to play a modest role, low expected demand explains most of the weakness in business investment, with uncertainty also making a contribution. However, systematically over-optimistic business investment.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) ... ue_44_2017-05-en.pdf (application/pdf)

Related works:
Working Paper: Explaining the Recent Slump in Investment: the Role of Expected Demand and Uncertainty (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Rue de la Banque from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().

Page updated 2022-01-16
Handle: RePEc:bfr:rueban:2017:44