Investment Slowdown in Denmark: Diagnosis and Policy Options
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
Total investment in Denmark has experienced a sharp slowdown following the global financial crisis. This slowdown has coincided with a decline in labor productivity and expansion of the current account surplus. This paper presents stylized facts summarizing the investment slowdown followed by an empirical analysis identifying its drivers. The results suggest that the decline in output has contributed to investment slowdown, consistent with predictions of the accelerator model. However, other factors, including high leverage and structural rigidities in product markets, also played a role.
Series:
Working Paper No. 2018/161
Subject:
Commodity markets Financial crises Financial markets Global financial crisis of 2008-2009 Gross fixed investment Labor productivity National accounts Private investment Production
English
Publication Date:
July 12, 2018
ISBN/ISSN:
9781484367537/1018-5941
Stock No:
WPIEA2018161
Pages:
41
Please address any questions about this title to publications@imf.org