Tag Archive | "Investment"

Buying a Real State Property Based on Two Possible Scenarios: Cash Payment and Payment by Installments. What’s the Best Option?

The following document presents a mathematical evaluation model applying two possible scenarios for the supposed acquisition of a property through a personal credit, with the purpose of knowing which is more convenient for the buyer: making a cash payment with a discount for prompt payment or making the purchase deferred in equal payments while generating a return through an investment instrument during the same period, thus assessing the results of both scenarios and the benefits that determine the best financial decision for the buyer.

  Buying a Real State Property Based on Two Possible Scenarios: Cash Payment and Payment by Installments. What's the Best Option? (765.5 KiB, 602 hits)

Posted in Economics, Information Technology, Volume VI, Issue no. 5

Heterogeneity of Capital Stocks in Japan: Classification by Factor Analysis

This paper examines the heterogeneity of capital stocks using financial statement data of publicly listed Japanese firms. We conduct factor analysis on investment rates among various capital goods and estimate factor loadings of each as its reactions to common factors like total factor productivity (TFP) shocks. Then we estimate the uniqueness for each investment rate, which is the percentage of its variance that is not explained by the common factors. If the estimated factor loadings are similar between some of the heterogeneous capital goods, it may well imply that the adjustment cost structure of these investments is also similar. Further, if some of the estimated values of uniqueness are small, it suggests that certain theoretical models may track the dynamics of the investment rates well.

Our estimation results show that Building and Structure have similar factor loadings as do Machinery & Equipment, Vehicles & Delivery Equipment, and Tools, Furniture, & Fixture. This suggests that we could remedy the Curse of Dimensionality by bundling the investments that have similar factor loadings together and that identifying the functional structures of each group of capital goods can greatly improve the performance of empirical investment equations.

  Heterogeneity of Capital Stocks in Japan: Classification by Factor Analysis (687.0 KiB, 1,622 hits)

Posted in Economics, Volume IV, Issue no. 2

The Impact Of Institutional Quality On Economic Growth And Development: An Empirical Study

During the last twenty years economics literature and debates have increasingly referred to institutions as the answers to the longstanding questions concerning how economic growth arises, what policies can be used to promote best results in terms of economic performances and what accounts for differences in GDP levels among countries so that the analysis of the institutional framework under which any economy operates has now become an indispensable object of research. This paper will investigate the impact of institutional quality on economic growth over sixty years among countries at different stages of development recurring to three institutional indicators tested through a pooled regression model and a fixed effects model.

  The Impact Of Institutional Quality On Economic Growth And Development: An Empirical Study (850.8 KiB, 4,270 hits)

Posted in Economics, Issue no. 6