These studies of the cost of capital will inspire and guide policy-makers who share the goal of making the allocation of capital in a market economy more efficient.
Volume 1 presents pioneering studies of the cost of capital as a determinant of investment expenditures. The cost of capital summarizes the future consequences of investment essential for current decisions. This concept has become an indispensible tool for studying the dynamics of investment behavior. Both macroeconome tric models and intertemporal general equilibrium models have employed the cost of capital as a determinant of short- and long-term investment expenditures.
About the Author
Dale W. Jorgenson is Samuel W. Morris University Professor at Harvard University. He is the author of 24 books on economics, including Productivity volumes 1 and 2 (MIT Press, 1995). His collected papers have been published in ten volumes by the MIT Press, starting in 1995.
"Dale Jorgenson . . . is preeminently the master of the territorybetween economics and statistics, where both have to be applied to thestudy of concrete probl ems. His prolonged exploration of thedeterminants of investment spending, whatever its ultimate lessons,will certainly long stand as one of the finest example s in themarriage of theory and practice in economics." —John Bates Clark Medal citation by the American Economic Association