Plant-Level Adjustment and Aggregate Investment Dynamics
From pages 3-4 -- 'This paper integrates the organizing framework of the aggregation literature and the microeconomic data of the LRD [Longitudinal Research Database]. It organizes data from a large sample of continuously operating plants in the U.S. manufacturing sector for the period 1972-88 (that is very similar to the sample used by Doms and Dunne) in a way that is useful for understanding aggregate investment dynamics. Indeed, the final product is an aggregate investment equation that has aggregate equipment investment on the left-hand side and not only aggregate, but also microeconomic variables on the right-hand side. Throughout the paper we attempt to explain equipment investment.'
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- Brookings papers on economic activity
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- Academic Units
- Brookings Institution
- Published Here
- November 26, 2013
Includes 'Comments and Discussion' by additional authors starting at page 40.