The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Apr, 1967, Volume 35, Issue 2
https://doi.org/0012-9682(196704)35:2<169:IBIUM1>2.0.CO;2-1
p. 169-220
Dale W. Jorgenson, James A. Stephenson
The purpose of this paper is to test a theory of investment behavior based on the neoclassical theory of optimal capital accumulation. This theory of investment behavior determines the demand for capital services, the relationship between changes in demand and actual investment expenditures, and investment for replacement purposes. Investment functions based on the theory are fitted to data for fifteen sub-industries for manufacturing in the United States for the period 1947-1960 and groupings of these industries into total durables, total nondurables, and total manufacturing. The empirical results provide new evidence on the relationship of determinants of investment expenditures to instruments of economic policy. These results suggest an important role for the tax structure and the cost of capital in the determination of investment expenditures. Investment functions for groupings of the sub-industries are tested for the presence of errors of aggregation. The use of such aggregates results in substantial errors of aggregation.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
