| Description |
1 online resource (48 pages) : illustrations |
| Series |
IMF working paper, 2227-8885 ; WP/08/45 |
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IMF working paper ; WP/08/45
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| Contents |
I. Introduction; II. Structure of aggregate investment expenditures; A. Empirical evidence from input-output tables; B. Implications for tradables and nontradables; C. Alternative data sources; III. Investment expenditures on nontradables in national accounts; A. Time-series data; B. Cross-section data; IV. Compatibility with related empirical regularities in the literature; V. Implications for modeling choices; A. Models with aggregate capital stock; B. Models with tradable and nontradable capital; C. Models with capital-skill complementarity |
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3. Investment expenditures on the output of different sectors of economic activity, as a fraction Of total expenditures, USA, 1997 ... 4. Investment expenditures on the output of different sectors of economic activity, as a fraction of total expenditures, 1998-2001; 5. Tradability of sectoral output for selected countries; 6. Summary of aggregate investment expenditures on nontradable goods, 1970-2000; 7. Summary statistics for investment expenditures on nontradable goods, OECD data; 8. Summary statistics for investment expenditures on nontradable goods, UN data |
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9. Correlation between expenditure shares on nontradables, UN data10. Pooled time trends for sample countries with at least 30 annual observations; 11. Cross-section comparison of investment expenditures on nontradable goods, UN data, 1950-1997; 12. Cross-section comparison of investment expenditures on nontradable goods, PWT benchmark data; 13. Investment expenditure share on nontradable goods by region, PWT 1996 benchmark data; 14. Comparison of aggregate investment expenditure shares on construction in Burstein et al. (2004) and OECD national accounts data; Figures |
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1. Investment expenditures share on nontradables in selected countries2. Investment expenditure share on nontradables when residential construction is excluded from investment, cross-section averages; 3. Investment expenditure share on nontradables for selected years; 4. Investment expenditure share on nontradables for selected regions; 5. Relative price of nontradables in investment, 1996-PWT benchmark data; 6. Relative price of nontradables in investment in selected countries; 7. Variation in investment rates under different model specifications |
| Summary |
This paper shows that aggregate investment expenditure shares on tradable and nontradable goods are very similar across countries and regions. Furthermore, the two expenditure shares have remained close to constant over time, with the average expenditure share on nontradables varying between 0.54-0.62 over the 1960-2004 period. These empirical findings offer a new restriction for two-sector models of the aggregate economy. Combined with the fact that the relative price of nontradables correlates positively with income and exhibits large differences across space and time, our findings suggest that tradable and nontradable goods in investment can be modeled using the Cobb-Douglas aggregator |
| Bibliography |
Includes bibliographical references (pages 21-24) |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Investments -- Econometric models
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Non-traded goods -- Econometric models
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Commercial products -- Econometric models
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Non-traded goods.
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Non-traded goods
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Commercial products -- Econometric models
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Investments -- Econometric models
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| Form |
Electronic book
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| Author |
International Monetary Fund. Research Department
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| ISBN |
1283515806 |
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9781283515801 |
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1451913605 |
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9781451913606 |
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