Was Japan's level of investment in the 1990's excessive?
Author(s)
Guest, RS
McDonald, IM
Griffith University Author(s)
Year published
2003
Metadata
Show full item recordAbstract
In this paper a method for calculating the socially optimal level of aggregate investment is developed. That method is then applied to Japan. It is found that in the 1990's the level of investment in Japan was excessive, in the sense that it exceeded the socially optimal level. The degree of over-investment in Japan in the 1990's has averaged about 5.5 per cent of GDP per year according to the calculations in this paper.In this paper a method for calculating the socially optimal level of aggregate investment is developed. That method is then applied to Japan. It is found that in the 1990's the level of investment in Japan was excessive, in the sense that it exceeded the socially optimal level. The degree of over-investment in Japan in the 1990's has averaged about 5.5 per cent of GDP per year according to the calculations in this paper.
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Journal Title
Singapore Economic Review
Volume
48
Issue
1
Copyright Statement
© 2003 World Scientific Publishing Company. The electronic version of the article is published as above.
Subject
Economics