Behavior

Consumption Investment Open Economy Money & Prices

We estimate the wisdom of nations by seeing what they did with their surplus capital.

— Ralph Waldo Emerson

Economics 302: Macroeconomic Analysis

Investment

Background:

Blanchard, chapter 16 (pp. 342–353), chapter 15 (pp. 320–322, 326–333), chapter 3 (pp. 58–61).

Analysis:

Liesman, Steve. "Washington Needs to Decide If It Favors Capital or Labor," The Wall Street Journal, September 12, 2003.
"Wirtschaftsblunder," The Economist, February 19, 2004. [PDF version]

In The News:

Hafer, Rik. "The Missing Link," Commentary, The Wall Street Journal, January 28, 2004.
Kay, John. "Borrowing bonanza will end in tears," The Financial Times, May 25, 2004.

Going Further:

Kopcke, Richard W. with Richard S. Brauman. "The Performance of Traditional Macroeconomic Models of Businesses' Investment Spending," New England Economic Review, Federal Reserve Bank of Boston, no. 2, 2001, pp. 3–39.