ABSTRACT
Our problem here is to find the determinants of the rate of investment decisions, i.e. the amount of investment decisions per unit of time. Investment decisions in a given period, determined by certain factors operating in that period, are followed by actual investment with a time lag. The time lag is largely due to the period of construction, but also reflects such factors as delayed entrepreneurial reactions. If the amount of fixed capital investment decisions per unit of time is denoted by D, and investment in fixed capital by F, we shall have the relation: https://www.w3.org/1998/Math/MathML"> F t + τ = D t https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9780203708668/09397ff6-dfe3-4264-97b7-fa15b1e26590/content/math_78_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/> where the lag, τ, is the horizontal distance between the time curve of investment decisions per unit of time, D, and the time curve of investment in fixed capital, F. 1
