The Facts About Time: To-Build

August 1, 2000

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents new empirical evidence about the process of plant investment. Using newspaper and trade journal articles, the author collects and analyzes time-to-build data for a sample of Compustat firms. These data suggest that the average construction lead time for new plants is around two years in most industries. Business cycle fluctuations do not affect the length of time-to-build. The investment lead times are generally not sensitive to the size of the projects. Only nine percent of the firms in the sample deviate from their investment schedules and delay or abandon their projects.

Subject: Business cycles, Data collection, Economic and financial statistics, Economic growth, Labor, National accounts, Transportation, Unemployment rate

Keywords: Business cycles, company news, Compustat firm, Data collection, industry composition, industry dummy, industry publication, investment, investment data, plant construction, point of view, Time-to-build, Transportation, transportation industry, Unemployment rate, utilities industry, WP

Pages:
22
Volume:
2000
DOI:
https://doi.org/10.5089/9781451855975.001
Issue:
138
Series:
Working Paper No. 2000/138
Stock No:
WPIEA1382000
ISBN:
9781451855975
ISSN:
1018-5941

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