Abstract
The purpose of this chapter is to model both investment growth and cycle without artificially imposing a separation between them. This will be done by establishing both a long-run equilibrium investment level (adjustment) function and a short-run investment growth rate cycle (adjustment) equation based on the recently developed cointegration and error correction approaches. This chapter is an extended version of Sun (1998a).
Keywords
- Error Correction
- Unit Root
- Error Correction Model
- Conditional Model
- Trend Function
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© 2001 Institute of Social Studies
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Sun, L. (2001). Estimating Investment Functions Based on Cointegration. In: Aggregate Behaviour of Investment in China, 1953–96. Institute of Social Studies, The Hague. Palgrave Macmillan, London. https://doi.org/10.1057/9780230513884_6
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DOI: https://doi.org/10.1057/9780230513884_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-42671-3
Online ISBN: 978-0-230-51388-4
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