 THE CONTRIBUTION OF EQUIPMENT LEASING IN THE ERROR-CORRECTION MODEL OF INVESTMENT IN MACHINERY AND EQUIPMENT: EVIDENCE FROM ITALYApplied Econometrics and International Development, 2009, vol. 9, issue 2 Abstract: Several studies have shown a positive correlation between investment in machinery and equipment and economic growth. For this reason, it is very important for policy-makers to study the dynamics of investments and their expected evolution over time through forecast scenarios. The paper aims to present an error-correction model of investment in machinery and equipment at current price with a focus on the contribution of equipment leasing. The main empirical results of the model with equipment leasing as exogenous show that the variable explains 96% of the investment variability and, that as leasing grows by 1 percentage point, investment grows by 0.3%; the elasticity is reduced to 0.2 in the model with all the exogenous variables taken into account (equipment leasing, demand (defined as sum of consumptions and exports), long-term interest rate and industrial production index). Keywords: Equipment Leasing; Error-Correction Model; Investment in Machinery and Equipment; Unit Root and (co-)Integration Tests (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:9:y:2009:i:2_8 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development |
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