Nonresidential and Residential Investment
Menzie Chinn (June 17th, 2008) Writes:
Article Source: Nonresidential investment has been increasing until 2008Q1, at which time it essentially stalled (-0.2 ppts. annualized in log terms). On the basis of past historical correlations, what's in store?
Figure 1: Four quarter growth rate in nonresidential investment (blue) and residential investment (red) lagged one year, calculated as four quarter log difference. Source: BEA GDP release of 29 May 2008, NBER, and author's calculations.Figure 1 depicts the time series for year-on-year nonresidential investment growth, and residential investment growth lagged four quarters. There's an obvious correlation, but clearly it's not a particularly strong one. There are periods where business fixed investment levitates above residential growth, such as the latter part of the 1980s (due to the dollar's depreciation), and during the 1990s, as well as the most recent few quarters. The relationship ...
Figure 1: Four quarter growth rate in nonresidential investment (blue) and residential investment (red) lagged one year, calculated as four quarter log difference. Source: BEA GDP release of 29 May 2008, NBER, and author's calculations.Figure 1 depicts the time series for year-on-year nonresidential investment growth, and residential investment growth lagged four quarters. There's an obvious correlation, but clearly it's not a particularly strong one. There are periods where business fixed investment levitates above residential growth, such as the latter part of the 1980s (due to the dollar's depreciation), and during the 1990s, as well as the most recent few quarters. The relationship ...
Tags for this Post:
Bold Face, Economics, Gdp Release, Horizontal Axis, Investment Growth, Investment Sum, Msl, Nber, Nonresidential Investment, Ols Regression, Ppts, Quarter Growth, Red Square, Regression Line, Residential Growth, Residential Investment, Smpl, Square Source, Statistical Significance, Strong One, Vertical Axis
Bold Face, Economics, Gdp Release, Horizontal Axis, Investment Growth, Investment Sum, Msl, Nber, Nonresidential Investment, Ols Regression, Ppts, Quarter Growth, Red Square, Regression Line, Residential Growth, Residential Investment, Smpl, Square Source, Statistical Significance, Strong One, Vertical Axis


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