Investment and uncertainty in machinery and real estate

Detalhes bibliográficos
Autor(a) principal: Pereira,Rodrigo Mendes
Data de Publicação: 2008
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000300003
Resumo: Investment is usually treated as an homogeneous variable in the literature. The wide differences in the nature of inputs used in investment projects may lead to interesting insights that are not captured in the conventional approach. In this paper I decompose investment in machinery and industrial real estate and examine the impact of economic uncertainty on each of these components. Using panel data estimation methods for the Brazilian industry, I found that uncertainty exerts a harmful effect on both types of investment. However, the effect is much more intense with machines, which possibly is a consequence of their high reversibility costs.
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spelling Investment and uncertainty in machinery and real estateInvestmentuncertaintyGARCHpanel dataInvestment is usually treated as an homogeneous variable in the literature. The wide differences in the nature of inputs used in investment projects may lead to interesting insights that are not captured in the conventional approach. In this paper I decompose investment in machinery and industrial real estate and examine the impact of economic uncertainty on each of these components. Using panel data estimation methods for the Brazilian industry, I found that uncertainty exerts a harmful effect on both types of investment. However, the effect is much more intense with machines, which possibly is a consequence of their high reversibility costs.Fundação Getúlio Vargas2008-09-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000300003Revista Brasileira de Economia v.62 n.3 2008reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGV10.1590/S0034-71402008000300003info:eu-repo/semantics/openAccessPereira,Rodrigo Mendeseng2009-02-06T00:00:00Zoai:scielo:S0034-71402008000300003Revistahttp://bibliotecadigital.fgv.br/ojs/index.php/rbe/issue/archivehttps://old.scielo.br/oai/scielo-oai.php||rbe@fgv.br1806-91340034-7140opendoar:2009-02-06T00:00Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)false
dc.title.none.fl_str_mv Investment and uncertainty in machinery and real estate
title Investment and uncertainty in machinery and real estate
spellingShingle Investment and uncertainty in machinery and real estate
Pereira,Rodrigo Mendes
Investment
uncertainty
GARCH
panel data
title_short Investment and uncertainty in machinery and real estate
title_full Investment and uncertainty in machinery and real estate
title_fullStr Investment and uncertainty in machinery and real estate
title_full_unstemmed Investment and uncertainty in machinery and real estate
title_sort Investment and uncertainty in machinery and real estate
author Pereira,Rodrigo Mendes
author_facet Pereira,Rodrigo Mendes
author_role author
dc.contributor.author.fl_str_mv Pereira,Rodrigo Mendes
dc.subject.por.fl_str_mv Investment
uncertainty
GARCH
panel data
topic Investment
uncertainty
GARCH
panel data
description Investment is usually treated as an homogeneous variable in the literature. The wide differences in the nature of inputs used in investment projects may lead to interesting insights that are not captured in the conventional approach. In this paper I decompose investment in machinery and industrial real estate and examine the impact of economic uncertainty on each of these components. Using panel data estimation methods for the Brazilian industry, I found that uncertainty exerts a harmful effect on both types of investment. However, the effect is much more intense with machines, which possibly is a consequence of their high reversibility costs.
publishDate 2008
dc.date.none.fl_str_mv 2008-09-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000300003
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000300003
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/S0034-71402008000300003
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Fundação Getúlio Vargas
publisher.none.fl_str_mv Fundação Getúlio Vargas
dc.source.none.fl_str_mv Revista Brasileira de Economia v.62 n.3 2008
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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