Antoine Naboulet (I.D.H.E Cachan, Ecole Normale Supérieure de Cachan, France), Sebastien Raspiller

Factors in business investment: an expectation based approach using business survey data

This paper aims at enlightening firms’ investment decisions by focusing on their subjective judgments about the impact of different factors (expected demand, expected profit, financial conditions, technical factors…). This work uses INSEE’s business surveys on investment in the industry. In October these surveys contain questions about the effect of factors on realized and expected capital expenditure. Data from 1991 to 2001 are studied at individual and aggregate levels.

Keywords: investment decision, expectations, business survey data, panel data, Mundlack's method

JEL Codes: C23, D84, E22

Session: 3e   Room 2004   Category: Investment

Paper