RDP 9512: Consumption, Investment and International Linkages Appendix E: Cost of Investment-Stock-Adjusted Model

Guy Debelle and Bruce Preston

December 1995

Allowing for cost of investment stock adjusted series gives the following estimation results for selected models.

Table 9: Results for Cost of Investment Stock Adjusted Model
  Model
Variable (1) (2)
Cash flow 0.21**
(0.05)		 0.20**
(0.07)
Q(−1) 0.02
(0.03)		  
I/K(−1) 0.90**
(0.05)		 0.88**
(0.06)
Confidence   0.00005*
{0.09}

Note: Values marked ** (*) are significant at the 5% (10%) respectively.

Comparison of results with those presented in Table 7 reveals that the allowance of investment costs alters neither the point estimates nor standard errors substantially.