Business Investment in the 1970s: A Comparison of Models

Charles W. Bischoff

CWB

Charles W. Bischoff Yale University

Discussants: Barry P. Bosworth and

Barry P. Bosworth Senior Fellow Emeritus - Economic Studies

Robert Hall

Robert Hall Robert and Carole McNeil Senior Fellow - Hoover Institution, Professor of Economics - Stanford University

THE INVESTMENT BOOM THAT PERSISTED throughout the late nineteensixties
is now over. Whether private spending for fixed capital, after allowance
for rising prices, will increase at all in 1971 is an open question at
this point. This paper attempts to supply an answer and to look a bit further
ahead, into 1972 and early 1973.