Prague Economic Papers 1996, 5(1) | DOI: 10.18267/j.pep.98
Investment model of the czech economy
Investment is a source of maintaining or increasing of the capital stock in the economy. By increasing the capital stock, investment spending can augment the future output of the economy. Being a dynamic phenomenon, its determinants arise over various past periods and its formalization belongs to problems of specifying and estimating relationships describing dynamic disequilibrium behaviour. The sources of the dynamics are mainly the durability of capital goods, the problem of financing a purchase over time and the expectations of investment behaviour. Econometricians trying to model, analyze and prognosticate the economic development in transition economies have to solve two typical problems nowadays, the lack of the data and the weak correspondence between standard theories and economic processes in question.
Published: January 1, 1996 Show citation
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