Abstract
This paper examines the explanatory power of the “time-to-build” propagation mechanism when the mechanism is modified to take into account capital complementarity. Since, in order to come “on line”, completed structures require equipment and large structures may require smaller complementary structures, the persistence of investment “starts” may be explainable in terms of such complemenrity. The hypothesis is made operational using finely-detailed U.S. Commerce department survey data. Results are consistent with the hypothesis that an important cause of “starts” persistence is the complementary relationship existing between various “orders” of capital.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
