Comparative Analysis of Investments Accelerator Models (Case of Georgia and USA)
Paper discusses R. Koppke’s empirical research of investment accelerator model in case of economy of USA and empirically tests L. M.Koyck’s investments accelerator models’ results in case of Georgia. Practical models consider Georgia’s economic specification and important events (results of the war in august, 2008 year).
Empirical studies validate interrelation of GDP’s and total investments’ current and lagged values with total capital. Also, research estimates quarterly values of Georgia’s total capital from 2003 year to 2016 year and depreciation rate, which is equal to 5.7%. Last part of the article presents comparative analysis of empirically tested models in case of Georgia and USA.
Keywords: total investments; Georgia’s Total Capital; L. M.Koyck’s investments accelerator model; GDP.
JEL Codes: P 20, P 31, P 40, P 52