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The Capital Investment Problem With Technological Change

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  • Neslihan Ozkan

Abstract

The investment decision of a firm allowing for technological change is investigated. Based on the premise that technological change requires capital investment, a simple Q model of capital investment, which describes the investment behaviour of a perfectly competitive firm, is developed. The model is estimated using US manufacturing sector data over the period 1947–87 and the data provide support for the model.

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  • Neslihan Ozkan, 2003. "The Capital Investment Problem With Technological Change," Manchester School, University of Manchester, vol. 71(2), pages 205-216, March.
    • Handle: RePEc:bla:manchs:v:71:y:2003:i:2:p:205-216
    DOI: 10.1111/1467-9957.00343
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