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The research reported in this paper was aimed at constructing semi-annual investment plan series and testing them in the context of simple realization functions. The anticipation series obtained proved to work satisfactorily in the framework of a crude model employed for private and public investment. As could be expected, the results illustrated the differences between the two sectors. Building and construction plans turned out to have better forecasting power than machinery and equipment plans. Dummy variables were used to account for the effects of fiscal policy. [ABSTRACT FROM AUTHOR]

Abstract This paper studies the effects of the Swedish investment funds system (IF) on the cost of capital. It is shown that the incentive effects critically depend on which "regime" the firm is ia when the funds are released by the government and which "regime" it expects to be in in the future. For quite reasonable assumptions, IF-releases turn on to have much less impact on the incentive to invest than conventionally assumed. [ABSTRACT FROM AUTHOR]

This article examines the amount of capital investment that is used for financing sunk costs in Sweden's manufacturing industry. The author here considers the prices paid for used capital assets, in particular the sunk cost component of capital investments. The extent to which an asset is sunk costs depends on the characteristics of both the asset and the second-hand market. Salvage-values are typically higher for non-specific assets with liquid second-hand markets such as trucks, aircraft, and office buildings, than for equipment tail or made to the requirements of the initial owner. The fraction of a capital investment that represents sunk costs has been an important-but quantitatively largely unknown-building block in many economic models. In recent work on the timing of investments under uncertainty, the presence of sunk costs introduces an option value of waiting for new information and delaying irreversible decisions. Some remarks on second-hand prices of used capital assets are now in order.