Abstract
The purpose of this chapter is to expand on the concept of the marginal efficiency of investment, making it an explicit function of several variables besides the rate of interest. At least as important, we consider real investment behavior in three distinct sectors: the domestic, making non-tradables; the international, making exportables and importables; and the foreign sector, where investment in production facilities responds to policy measures taken at home.
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© 1991 Springer-Verlag Berlin Heidelberg
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Gehrels, F. (1991). Investment Behavior in an Open Economy. In: Essays in Macroeconomics of an Open Economy. Lecture Notes in Economics and Mathematical Systems, vol 362. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-95659-1_6
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DOI: https://doi.org/10.1007/978-3-642-95659-1_6
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-54074-8
Online ISBN: 978-3-642-95659-1
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