TY  - JOUR
AU  - Fair,Ray C.
TI  - A Comment on Feldstein's Fisher-Schultz Lecture
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 716
PY  - 1981
Y2  - July 1981
UR  - http://www.nber.org/papers/w0716
L1  - http://www.nber.org/papers/w0716.pdf
N1  - Author contact info:
Ray C. Fair
Cowles Foundation
P.O. Box 208281
Yale University
New Haven, CT  06520-8281
E-Mail: ray.fair@yale.edu
AB  - Feldstein argues in his Fisher-Schultz Lecture that he has found, by accounting for inflation and taxes, large and significant rate of return effects on investment. His results are interesting because they seem to be robust to alternative specifications of the investment equation. Feldstein has clearly not exhausted all possible specifications of the investment equation, and this comment reports on results, using Feldstein's data, for one alternative specification. The results do not support Feldstein's conclusion. The data do not appear to contain enough information to decide the issue of the quantitative effect of the cost of capital on investment.
ER  -