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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
1987_SIC_to_2002_NAICS.xls application/vnd.ms-excel 396.5 KB 06/19/2020 07:27:AM
CUMMINS-VIOLANTE-DATA.xls application/vnd.ms-excel 694 KB 06/19/2020 07:27:AM
Figure1&6.pptx application/vnd.openxmlformats-officedocument.presentationml.presentation 39 KB 06/19/2020 07:27:AM
IS_investment.dta application/x-stata 2.5 KB 06/19/2020 07:27:AM
Ind_weights.dta application/x-stata 28.7 KB 06/19/2020 07:27:AM
Kehrig_data.dta application/x-stata 5.6 KB 06/19/2020 07:27:AM
README.pdf application/pdf 180.3 KB 06/19/2020 07:27:AM
analysis.do text/x-stata-syntax 4.3 KB 06/19/2020 07:27:AM
compute_A.m text/x-objcsrc 805 bytes 06/19/2020 07:27:AM
compute_sum.m text/x-matlab 215 bytes 06/19/2020 07:27:AM

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


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Published Versions

V2 [2021-10-21]

V1 [2020-06-19]

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