2007 Student Research Conference:
20th Annual Student Research Conference

Social Science

Empirically Estimating Gross Fixed Capital Formation
Amy L. Rowden
Dr. Xiaofen Chen, Faculty Mentor

Gross capital formation is an important variable in macroeconomics. It is included in the capital account of the official settlement balance and is an important determinant of trade imbalance. This research project utilizes a statistical method for gross capital formation. This project will explore the significance of four explanatory variables of gross capital formation in over 30 different countries. The ordinary least squares method will be used to evaluate several linear regression models. Prediction variables will include the nominal lending rate, gross domestic product, the local exchange rate in terms of US dollars, and growth in gross domestic product. The empirical model will be used to test the explanatory power of the selected variables to gross capital formation.

Keywords: capital formation, investment, data, variable


Presentation Type: Oral Paper

Session: 33-4
Location: VH 1412
Time: 10:30 am

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