Investment in inflationary economies /

Investment in inflationary economies /

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Bibliographic Details
Author / Creator:	Levy Yeyati, Eduardo, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©1996.
Description:	1 online resource (iii, 27 pages) : illustrations
Language:	English
Series:	IMF working paper ; WP/96/105 IMF working paper ; WP/96/105.
Subject:	Investments -- Effect of inflation on -- Econometric models. Inflation (Finance) -- Econometric models. Prices -- Econometric models. Inflation (Finance) -- Econometric models. Investments -- Effect of inflation on -- Econometric models. Prices -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12497005

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. Western Hemisphere Department, issuing body.
ISBN:	1455210064 9781455210060
Notes:	Includes bibliographical references (pages 26-27). Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. 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 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	Annotation The paper presents a model of irreversible investment under uncertainty, where investment takes place whenever a threshold level of marginal returns is reached. the threshold depends positively on price volatility; a change from high to low inflation induces an upward capital stock adjustment. In economies that move in and out of temporary stabilizations, the observed effect is a negative inflation-investment correlation that replicates previous empirical findings, due to purely short-term dynamics. I study how this correlation is affected by the expected duration of each regime. Empirical evidence from ten inflationary economies confirms the predictions of the model.
Other form:	Print version: Levy Yeyati, Eduardo. Investment in inflationary economies. [Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., ©1996

Description
Summary:	The paper presents a model of irreversible investment under uncertainty, where investment takes place whenever a threshold level of marginal returns is reached. The threshold depends positively on price volatility; a change from high to low inflation induces an upward capital stock adjustment. In economies that move in and out of temporary stabilizations, the observed effect is a negative inflation-investment correlation that replicates previous empirical findings, due to purely short-term dynamics. I study how this correlation is affected by the expected duration of each regime. Empirical evidence from ten inflationary economies confirms the predictions of the model.
Physical Description:	1 online resource (iii, 27 pages) : illustrations
Format:	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.
Bibliography:	Includes bibliographical references (pages 26-27).
ISBN:	1455210064 9781455210060