Estimation of the investment function for the Republic of Macedonia
Biljana Petkovska ()
Additional contact information
Biljana Petkovska: National Bank of the Republic of Macedonia
No 2008-04, Working Papers from National Bank of the Republic of North Macedonia
Investment is one of the crucial macroeconomic variables - it adds to the capital stock and thus determines the long term production capacity in the economy. Investment, also, is one of the channels through which macroeconomic policies, monetary and fiscal policy, can affect the real economy. This paper presents an estimate of the investment function for the Republic of Macedonia, based on the Johansen cointegration technique. The results obtained show that, according to the Keynesian accelerator theory, investments are driven by changes in the aggregate demand. In addition, as the neoclassical model predicts, the cost of employing additional unit of capital exhibits significant influence on the investment decisions' of the firms, but only in the short run. The obtained results are broadly in line with the ones found in different studies and with the one used in previous work on this topic for Macedonia.
Pages: 23 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.nbrm.mk/WBStorage/Files/WebBuilder_Esti ... nction_Macedonia.pdf First version, 2008 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mae:wpaper:2008-04
Access Statistics for this paper
More papers in Working Papers from National Bank of the Republic of North Macedonia Contact information at EDIRC.
Bibliographic data for series maintained by Jovica Mitik ().