To install click the Add extension button. That's it.

The source code for the WIKI 2 extension is being checked by specialists of the Mozilla Foundation, Google, and Apple. You could also do it yourself at any point in time.

4,5
Kelly Slayton
Congratulations on this excellent venture… what a great idea!
Alexander Grigorievskiy
I use WIKI 2 every day and almost forgot how the original Wikipedia looks like.
Live Statistics
English Articles
Improved in 24 Hours
Added in 24 Hours
Languages
Recent
Show all languages
What we do. Every page goes through several hundred of perfecting techniques; in live mode. Quite the same Wikipedia. Just better.
.
Leo
Newton
Brights
Milds

Investment (macroeconomics)

From Wikipedia, the free encyclopedia

In macroeconomics, investment "consists of the additions to the nation's capital stock of buildings, equipment, software, and inventories during a year"[1] or, alternatively, investment spending — "spending on productive physical capital such as machinery and construction of buildings, and on changes to inventories — as part of total spending" on goods and services per year.[2]

The types of investment include residential investment in housing that will provide a flow of housing services over an extended time, non-residential fixed investment in things such as new machinery or factories, human capital investment in workforce education, and inventory investment (the accumulation, intentional or unintentional, of goods inventories) In measures of national income and output, "gross investment" (represented by the variable I) is a component of gross domestic product (GDP), given in the formula GDP = C + I + G + NX, where C is consumption, G is government spending, and NX is net exports, given by the difference between the exports and imports, XM. Thus investment is everything that remains of total expenditure after consumption, government spending, and net exports are subtracted (i.e. I = GDP − CGNX).

"Net investment" deducts depreciation from gross investment. Net fixed investment is the value of the net increase in the capital stock per year.

Fixed investment, as expenditure over a period of time (e.g., "per year"), is not capital but rather leads to changes in the amount of capital. The time dimension of investment makes it a flow. By contrast, capital is a stock—that is, accumulated net investment up to a point in time.

YouTube Encyclopedic

  • 1/3
    Views:
    6 255
    6 059
    9 230
  • Lecture 2: Consumption, Saving and Investment Part (I)
  • Macro - Investment Demand
  • EC1002 - 10.2 Investment Functions

Transcription

Determinants

Investment is often modeled as a function of interest rates, given by the relation I =  I (r), with the interest rate negatively affecting investment because it is the cost of acquiring funds with which to purchase investment goods, and with income positively affecting investment because higher income signals greater opportunities to sell the goods that physical capital can produce.

In some research, investment is modeled as an increasing function of Tobin's q, which is the ratio between a physical asset's market value and its replacement value. If, for example, this ratio is greater than 1, machinery can be bought at one price and then generate output worth the larger amount that is reflected in its market value, giving positive economic profit.

In some research, investment is modeled as an increasing function of the gap between the optimal capital stock and the current capital stock. Here the optimal capital stock is modeled as that which maximizes profit.

See also

References

  1. ^ Samuelson, Paul A., and Nordhaus, William D. (2001), 17th ed. Economics, p. 442. McGraw-Hill.
  2. ^ Krugman, Paul and Robin Wells (2012), 2nd ed. Economics, p. 593. Worth Publishers.
This page was last edited on 1 November 2023, at 18:27
Basis of this page is in Wikipedia. Text is available under the CC BY-SA 3.0 Unported License. Non-text media are available under their specified licenses. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc. WIKI 2 is an independent company and has no affiliation with Wikimedia Foundation.