GNP, interest rate and construction investment: Empirical evidence from U.S. data

Tan, W (1988) GNP, interest rate and construction investment: Empirical evidence from U.S. data. Construction Management and Economics, 6(3), pp. 185-193. ISSN 01446193

Abstract

Economic theory suggests that construction investment varies directly with business profits and future expectation of profits and inversely with the interest rate. Time series studies using spectral analysis on US data reveal that future expectation and business profits have a greater impact on investment decisions than the interest rate.

Item Type: Article
Uncontrolled Keywords: construction investment; gnp; interest rate; spectral analysis
Index terms: investment decision, spectral analysis, profit, interest rate, economic theory, time series, evidence
Subjects: engineering analysis, evaluation and assessment methods, data science, economic analysis
Topics: Business Strategy, Design Practice, Research Practice
Descriptive scope: 3 CTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here