By Heinz Herrmann (auth.), Deutsche Bundesbank (eds.)

Investment is essential to the advance of a nation`s financial system and welfare. unlike the location within the usa, funding task in Europe has been particularly modest over the last few years. This quantity gathers jointly a few papers by means of well-liked researchers within the box of funding. It offers an summary of contemporary advancements during this zone and provides new empirical findings at the determinants and implications of the funding technique in ecu international locations. one of the subject matters tested are the function performed by way of taxation, uncertainty and the monetary platforms, in addition to the relevance of company governance to the funding technique. chapters are devoted to infrastructure funding and international direct investment.

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However, it does focus on the important elements determining the effects of tax policy, and will allow us to gain insights into current German economic policy issues. The potency of tax policy depends on three elasticities for the schedules describing the demand for capital (0-) and the supply of capital (<\» in Figure 4 and capital's role in production (ex). The range of outcomes are presented in Table 2. As shown in Column 1, if demanders and supplies are very price sensitive and endogenous growth theory is appropriate, then tax policy has significant effects on output.

Summers , R. and A. Heston . 1991. The Penn World Table (Mark 5): An Expanded Set of Intern ational Comparisons, 1950-1988. Quarterly Journal of Economics, 106, pp. 327368. 6 Database Files. Discussion Alan J. Auerbach 1 Introduction Robert Chirinko has provided us with a clear exposition of how fiscal policy might influence capital formation, what our objectives should be in this regard, and how this analysis relates to the current environment in Europe and recent policy proposals in Germany. In my comments, I will summarize what I see as the paper 's key points, evaluate these points, and raise additional issues relevant to the subject of the conference , 'Investing Today for the World of Tomorrow'.

An Exploration With Micro Data. Journal of Public Economics, 74, pp. 53-80. M. P. Meyer. 1999b. That Elusive Elasticity: A CrossSection/Long-Panel Approa ch To Estimating The Sensitivity Of Business Capital To Its User Cost, Emory University, Working Paper. K. 1993. Tax Incentives and Equipment Investment. Brookings Papers on Economic Activity, 1993(1), pp. 317-347. Coen, RM. 1969. Tax Policy and Investment Behavior: Comment. American Economic Review , 59, pp. 370-379. , RD. G. Gravelle, eds.

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