IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2020-190.html
   My bibliography  Save this paper

Intangible Investment and Low Inflation: A Framework and Some Evidence

Author

Listed:
  • Mr. Subir Lall
  • Mr. Li Zeng

Abstract

Intangible investment is growing as a share of economic activity. We present a simple framework incorporating its distinguishing characteristic of generally greater scalability and lower marginal costs than tangible investment. We show evidence that this may have contributed to more elastic aggregate supply in recent years, which is consistent with lower inflation and a flattening of the Phillips curve. This framework also highlights the channels through which technological change, a large constituent of intangible investment, may be leading to wage stagnation and greater market concentration.

Suggested Citation

  • Mr. Subir Lall & Mr. Li Zeng, 2020. "Intangible Investment and Low Inflation: A Framework and Some Evidence," IMF Working Papers 2020/190, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2020/190
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=49739
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fan, Xuecheng & Xu, Zeshui & Qin, Yong & Škare, Marinko, 2023. "Quantifying the short- and long-run impact of inflation-related price volatility on knowledge asset investment," Journal of Business Research, Elsevier, vol. 165(C).
    2. Otaviano Canuto, 2021. "U.S. Bubble-Led Macroeconomics," Research papers & Policy papers on Economic Trends and Policies 2119, Policy Center for the New South.
    3. Otaviano Canuto, 2021. "U.S. Bubble-Led Macroeconomics," Policy briefs on Economic Trends and Policies 2119, Policy Center for the New South.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2020/190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.