Investment and Uncertainty
Precipitating the Great Depression in the United States
Bibliographic Data
| ID | 9726249 |
|---|---|
| Authors | David Greasley (University of Edinburgh), Jakob B Madsen (0000-0002-4952-3043, University of Copenhagen) |
| Year | 2006 |
| Volume | 73 |
| Issue | 291 |
| Pages | 393-412 |
| Publication date | 2006-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1468-0335.2006.00505.x |
| OpenAlex | W2140089132 |
| Language | EN |
| Citations received | 8 |
| References cited | 26 |
A severe collapse of fixed capital formation distinguished the onset of the Great Depression from other investment downturns between the world wars. Using a model estimated for the years 1890–2000, we show that the expected profitability of capital measured by Tobin's q , and the uncertainty surrounding expected profits indicated by share price volatility, were the chief influences on investment levels, and that heightened share price volatility played the dominant role in the crucial investment collapse in 1930. Investment did not simply follow the downward course of income at the onset of the depression: rather, its slump helped to propel the wider collapse
Depression (economics) · Economics · Financial economics · Great Depression · Investment (military) · Macroeconomics · Monetary economics · Profitability index · Volatility (finance) · Economic theories and models · Finance · Market Dynamics and Volatility · Monetary Policy and Economic Impact
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Income Uncertainty and Consumer Spending during the Great Depression
Fluctuations in Income and Employment
Did Monetary Forces Cause the Great Depression
Fiscal Policy and Business Cycles
Fluctuations in Income and Employment
Investment and Hysteresis
| Unique citing works | 8 |
|---|---|
| Citations per year | 0,47 |
| Citation span | 2009 - 2022 (14) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 8 |