Articles
Characterizing the Stylized Facts of Facility Investment in the Post-crisis Period
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AuthorHangyong Lee (Hanyang University)
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Year2020
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VolumeVol.13
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NumberNo.1
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This paper documents some stylized facts in the facility investment after theglobal financial crisis from the perspectives of cross-section and time-series.First, facility investment rate, machinery and equipment investment rate inparticular, has been declining more rapidly than other OECD countries. Second,facility investment is heavily concentrated in a few industries including electronicmanufacturing. An industry-level cross-section regression shows that price ofcapital goods is a significant determinant of facility investment. Third, theco-movement between facility investment and GDP, estimated in the frequencydomain, is much weaker in the post-global financial crisis period.
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