Investment Slowdown in Denmark: Diagnosis and Policy Options
IMF Working Papers, July 12, 2018
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- Investment Slowdown in Denmark: Diagnosis and Policy Options
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Bibliographic details
- Authors: Tigran Poghosyan
- Published: July 12, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484367537.001
Executive summary and stylized facts
- Total investment in Denmark has experienced a sharp slowdown following the global financial crisis.
- The investment slowdown has coincided with:
- a decline in labor productivity.
- an expansion of the current account surplus.
- The paper presents stylized facts summarizing the investment slowdown and follows with an empirical analysis identifying its drivers.
Empirical findings on drivers
- Decline in output contributed to the investment slowdown, consistent with predictions of the accelerator model.
- Other contributing factors identified:
- high leverage.
- structural rigidities in product markets.
Analytical framework and scope
- The analysis combines stylized facts and empirical estimation to attribute drivers of the investment slowdown.
- The accelerator model is explicitly referenced as consistent with the role of output decline.
Subjects and keywords (as provided)
- Subjects: Commodity markets; Financial crises; Financial markets; Global financial crisis of 2008-2009; Gross fixed investment; Labor productivity; National accounts; Private investment; Production.
- Keywords: accelerator model; Commodity markets; Denmark; Global; Global financial crisis of 2008-2009; Gross fixed investment; IMF staff calculation; investment; investment growth; investment slowdown; Labor productivity; leverage; model; OECD EU country; Private investment; product market reform; structural reforms; WP.
Content in this bundle
- Investment Slowdown in Denmark: Diagnosis and Policy Options, WP/18/161, July 2018