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Data and Code for: Obsolescence of Capital and Investment Spikes

Principal Investigator(s):  View help for Principal Investigator(s) Boyan Jovanovic, New York University; Arthur Fishman, Ariel University and Bar Ilan University

Version:  View help for Version V1

Name File Type Size Last Modified
  Data and code 06/19/2020 11:27:AM
README.pdf application/pdf 180.3 KB 06/19/2020 08:03:AM

Project Citation: 

Jovanovic, Boyan, and Fishman, Arthur. Data and Code for: Obsolescence of Capital and Investment Spikes. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-06-19. https://doi.org/10.3886/E119984V1

Project Description

Summary:  View help for Summary
The prospect of capital obsolescence inhibits investment. Investors thus become more optimistic when the obsolescence of their capital slows down. We propose a model with no fixed costs of investment, and random technological progress that induces obsolescence of capital in place. Spikes occur precisely when technological progress 
slows down. Moreover, the more variable the progress, the larger are the spikes. Cross-industry data show that where price of capital declines are more variable, investment spikes are larger.

Scope of Project

Subject Terms:  View help for Subject Terms investments; E22; D25
Geographic Coverage:  View help for Geographic Coverage US Industries
Time Period(s):  View help for Time Period(s) 1947 – 1999


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Published Versions

V2 [2021-10-21]

V1 [2020-06-19]

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