Governmental activity and private capital adjustment

Research output: Working paperWorking papers

Standard

Governmental activity and private capital adjustment. / Ott, Ingrid; Soretz, Susanne.
Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg, 2006. (Working paper series in economics; No. 26).

Research output: Working paperWorking papers

Harvard

Ott, I & Soretz, S 2006 'Governmental activity and private capital adjustment' Working paper series in economics, no. 26, Institut für Volkswirtschaftslehre der Universität Lüneburg, Lüneburg.

APA

Ott, I., & Soretz, S. (2006). Governmental activity and private capital adjustment. (Working paper series in economics; No. 26). Institut für Volkswirtschaftslehre der Universität Lüneburg.

Vancouver

Ott I, Soretz S. Governmental activity and private capital adjustment. Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg. 2006. (Working paper series in economics; 26).

Bibtex

@techreport{c08dd4d4d98045bbaa48b1866d0d6d62,
title = "Governmental activity and private capital adjustment",
abstract = "We analyze within a dynamic model how firms decide on capital investment if the accompanying adjustment costs are a function of governmental activity. The government provides a public input and decides on the degree of rivalry. The productive public input enhances private capital productivity and reduces adjustment costs. We derive the equilibrium in which capital and investment ratio are both constant, carry out comparative dynamic analysis and discuss the model's policy implications. Increasing the amount of the public input unequivocally spurs capital investment whereas the result becomes ambiguous with respect to the impact of rivalry. Since a reduction in congestion increases the individually available amount of the public input, crowding out effects may lead to a reduction in the equilibrium capital stock. Most of the analysis is conducted for general production functions, although the case of CES technology is also considered.",
keywords = "Economics, Governmental activity, cogested public inputs, adjustment costs",
author = "Ingrid Ott and Susanne Soretz",
note = "Literaturverz. S. 21 - 22",
year = "2006",
language = "English",
series = "Working paper series in economics",
publisher = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",
number = "26",
type = "WorkingPaper",
institution = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",

}

RIS

TY - UNPB

T1 - Governmental activity and private capital adjustment

AU - Ott, Ingrid

AU - Soretz, Susanne

N1 - Literaturverz. S. 21 - 22

PY - 2006

Y1 - 2006

N2 - We analyze within a dynamic model how firms decide on capital investment if the accompanying adjustment costs are a function of governmental activity. The government provides a public input and decides on the degree of rivalry. The productive public input enhances private capital productivity and reduces adjustment costs. We derive the equilibrium in which capital and investment ratio are both constant, carry out comparative dynamic analysis and discuss the model's policy implications. Increasing the amount of the public input unequivocally spurs capital investment whereas the result becomes ambiguous with respect to the impact of rivalry. Since a reduction in congestion increases the individually available amount of the public input, crowding out effects may lead to a reduction in the equilibrium capital stock. Most of the analysis is conducted for general production functions, although the case of CES technology is also considered.

AB - We analyze within a dynamic model how firms decide on capital investment if the accompanying adjustment costs are a function of governmental activity. The government provides a public input and decides on the degree of rivalry. The productive public input enhances private capital productivity and reduces adjustment costs. We derive the equilibrium in which capital and investment ratio are both constant, carry out comparative dynamic analysis and discuss the model's policy implications. Increasing the amount of the public input unequivocally spurs capital investment whereas the result becomes ambiguous with respect to the impact of rivalry. Since a reduction in congestion increases the individually available amount of the public input, crowding out effects may lead to a reduction in the equilibrium capital stock. Most of the analysis is conducted for general production functions, although the case of CES technology is also considered.

KW - Economics

KW - Governmental activity

KW - cogested public inputs

KW - adjustment costs

M3 - Working papers

T3 - Working paper series in economics

BT - Governmental activity and private capital adjustment

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -

Documents