{
  "title": "Fixed Capital Adjustment: Is Latin America Different? Evidence from the Colombian and Mexican Manufacturing Sectors",
  "publication": "IMF Working Papers, April 1, 1999",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/fixed-capital-adjustment-is-latin-america-different-evidence-from-the-colombian-and-mexican-2999",
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  "summary": "This paper examines capital adjustment patterns using two large and largely novel data sets from the manufacturing sectors of Colombia and Mexico. The findings show that investment patterns in these countries resemble those reported for the United States to a surprising extent.",
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    {
      "heading": "Overview and Objective",
      "content": "- Examines capital adjustment patterns using two large and largely novel data sets from the manufacturing sectors of Colombia and Mexico.\n- Compares investment patterns in these countries to those reported for the United States."
    },
    {
      "heading": "Key Findings",
      "content": "- Investment patterns in Colombia and Mexico resemble those reported for the United States \"to a surprising extent.\"\n- Capital adjustments beyond maintenance investment occur only rarely.\n- Large spikes account for a significant fraction of total investment.\n- Duration models do not provide strong evidence for the presence of substantial fixed costs.\n- Nonparametric adjustment function estimates reveal the presence of irreversibilities in investment.\n- These irreversibilities are important for understanding aggregate investment behavior."
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      "heading": "Methodology and Technical Terms",
      "content": "- Data: Two large and largely novel manufacturing-sector datasets from Colombia and Mexico.\n- Analytical approaches mentioned:\n  - Duration models\n  - Nonparametric adjustment function estimates\n  - Logit models (listed among subjects/keywords)\n- Relevant technical terms and concepts preserved exactly as used in the source:\n  - capital stock\n  - equipment investment\n  - hazard function\n  - investment episode\n  - investment rate\n  - investment spike\n  - irreversibilities\n  - lumpiness\n  - nonconvexities\n  - panel data\n  - Producer price indexes\n  - Productivity\n  - Stocks\n\n---\n\n Content in this bundle\n\n- wp9959\n  - wp9959 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp9959 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/fixed-capital-adjustment-is-latin-america-different-evidence-from-the-colombian-and-mexican-2999"
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    "[Markdown version](/en/publications/wp/issues/2016/12/30/fixed-capital-adjustment-is-latin-america-different-evidence-from-the-colombian-and-mexican-2999/index.md)",
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    "Authors: Alberto Isgut",
    "Published: April 1, 1999",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451847925.001",
    "Examines capital adjustment patterns using two large and largely novel data sets from the manufacturing sectors of Colombia and Mexico.",
    "Compares investment patterns in these countries to those reported for the United States.",
    "Investment patterns in Colombia and Mexico resemble those reported for the United States \"to a surprising extent.\"",
    "Capital adjustments beyond maintenance investment occur only rarely.",
    "Large spikes account for a significant fraction of total investment.",
    "Duration models do not provide strong evidence for the presence of substantial fixed costs.",
    "Nonparametric adjustment function estimates reveal the presence of irreversibilities in investment.",
    "These irreversibilities are important for understanding aggregate investment behavior.",
    "Data: Two large and largely novel manufacturing-sector datasets from Colombia and Mexico.",
    "Analytical approaches mentioned:",
    "Relevant technical terms and concepts preserved exactly as used in the source:",
    "**_wp9959**"
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