Search: SOEs
RBA Glossary definition for SOEs
SOEs – state owned enterprises
Search Results
Doing Less, with Less: Capital Misallocation, Investment and the Productivity Slowdown in Australia
22 Mar 2023
RDP
2023-03
While these facts have so far been considered separately, this paper attempts to connect them by documenting investment patterns for firms with different levels of productivity.
https://www.rba.gov.au/publications/rdp/2023/2023-03.html
Understanding the Slowdown
22 Mar 2023
RDP
2023-03
Declining competition, which equates to a more inelastic demand curve and so a decline in revenue returns to scale. ... These firms will not be generating internal cash flows, and so will need to fund investment via external funding.
https://www.rba.gov.au/publications/rdp/2023/2023-03/understanding-the-slowdown.html
Appendix A: Data and Sample Statistics
22 Mar 2023
RDP
2023-03
sample. As noted, we focus on the market sector, and so exclude the Health, Education, and Public Administration divisions. ... We exclude all sole proprietors, as they do not report information on their balance sheets, and so on their capital stock.
https://www.rba.gov.au/publications/rdp/2023/2023-03/appendix-a.html
Doing Less, with Less: Capital Misallocation, Investment and the Productivity Slowdown in Australia
22 Mar 2023
RDP
2023-03
If so, not only is investment weak, but it is being put to less productive uses. ... So not only is aggregate investment falling, proportionately more of it is being done by the least productive firms.
https://www.rba.gov.au/publications/rdp/2023/2023-03/full.html
Has Capital Reallocation Slowed?
22 Mar 2023
RDP
2023-03
So the relationship between capital growth and productivity has weakened slightly more than employment and productivity, though the two do not differ substantially. ... We consider five further robustness checks. First, we consider the possibility that
https://www.rba.gov.au/publications/rdp/2023/2023-03/has-capital-reallocation-slowed.html
Introduction
22 Mar 2023
RDP
2023-03
If so, not only is investment weak, but it is being put to less productive uses. ... Thus, the story of Australian capital accumulation over the past decade or so is one of ‘doing less, with less’.
https://www.rba.gov.au/publications/rdp/2023/2023-03/introduction.html
Capital Flows, Investment and Productivity
22 Mar 2023
RDP
2023-03
If the amount of capital workers have to use increases (capital deepening), it will generally enable them to produce more output and so be more productive. ... So not only is aggregate investment falling, proportionately more of it is being done by the
https://www.rba.gov.au/publications/rdp/2023/2023-03/capital-flows-investment-and-productivity.html
Non-technical summary for ‘Doing Less, with Less: Capital Misallocation, Investment and the Productivity Slowdown in Australia’
22 Mar 2023
RDP
2023-03
Low-productivity firms experienced the smallest decline in investment over the past decade or so.
https://www.rba.gov.au/publications/rdp/2023/2023-03/non-technical-summary.html
References
22 Mar 2023
RDP
2023-03
Edwards H and K Lane (2021), ‘Why Are Investment Hurdle Rates so Sticky?’, RBA Bulletin, December.
https://www.rba.gov.au/publications/rdp/2023/2023-03/references.html
Aggregate Implications
22 Mar 2023
RDP
2023-03
In such a case, more productive firms would have been bigger, and so aggregate productivity would have been higher.
https://www.rba.gov.au/publications/rdp/2023/2023-03/aggregate-implications.html