Investment in the Euro Area : why has it been weak? /

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Bibliographic Details
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2015.
Description:	1 online resource (30 pages) : color illustrations.
Language:	English
Series:	IMF working paper ; WP/15/32 IMF working paper ; WP/15/32.
Subject:	Eurozone. Investments -- Econometric models. Capital costs -- Econometric models. Credit -- Econometric models. Corporate debt -- Econometric models. Capital costs -- Econometric models. Corporate debt -- Econometric models. Credit -- Econometric models. Eurozone. Investments -- Econometric models. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12504270

Hidden Bibliographic Details
Other authors / contributors:	Barkbu, Bergljot. International Monetary Fund. European Department.
ISBN:	1498364802 9781498364805 9781498364805 9781484358542 1484358546
ISSN:	1018-5941
Notes:	Authors: Bergljot Barkbu, S. Pelin Berkmen, Pavel Lukyantsau, Sergejs Saksonovs, and Hanni Schoelermann. "February 2015." "European Department." Includes bibliographical references (pages 17-18). Online resource; title from pdf title page (IMF.org Web site, viewed February 23, 2015).
Summary:	Investment across the euro area remains below its pre-crisis level. Its performance has been weaker than in most previous recessions and financial crises. This paper shows that a part of this weakness can be explained by output dynamics, particularly before the European sovereign debt crisis. The rest is explained by a high cost of capital, financial constraints, corporate leverage, and uncertainty. There is a considerable cross country heterogeneity in terms of both investment dynamics and its determinants. Based on the findings of this paper, investment is expected to pick up as the recovery strengthens and uncertainty declines, but persistent financial fragmentation and high corporate leverage in some countries will likely continue to weigh on investment.--Abstract.
Other form:	Print Version: 9781498364805
Standard no.:	10.5089/9781498364805.001

Table of Contents:

Cover; Contents; I. Introduction; II. Literature Survey; III. Drivers of Investment in the Euro Area; A. Output Changes and the Real Cost of Capital; B. Additional Determinants of Investment; C. Accelerator + Model: Exploring Other Determinants of Investment; IV. The Magnitude of Missing Investment; V. Conclusion; References; Appendices; 1. Data Definitions and Sources; Figures; A1.1. Cost of Capital Calculations; 2. Results; Tables; A2.1. Accelerator Model- Total Investments (Newey-West HAC Standard; A2.1. Accelerator Model: Private Non-residential Investment/Capital Ratio.
A2.2 Neoclassical Model: Estimates with Newey West Standard ErrorsA2.3. Neoclassical Model Augmented with Financial Constrains: Estimates with Newey West Standard Errors; A2.2. Neoclassical Model Without Financial Constrains: Private Non-residential Investment to Capital Ratio; A2.3. Neoclassical Model with Financial Constrains: Private Non-residential Investment to Capital Ratio; A2.4. Bond Market Model (Controlling for Output Changes and Financial Constraints); A2.4. Bond Market Model (Controlling for Output Changes and Financial Constraints)

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