The Investment behavior of french firms : a questionning analysis,
by Michel Norotte, Pierre Morin, Gilbert Venet.
The purpose of this article is the analysis of the investment behavior of french firms. French firms invested very actively before the first "oil shock", but their investment behavior can be considered somewhat disappointing since the second "oil shock", if compared with the other main countries of the Oecd.
The article points out the deterioration of corporations' financial situation until 1982 and the recovery thereafter. It also tries to summarize the various econometric works dealing with the influence of anticipated demand, relative price of factors and profit as determinants of investment.
Many difficulties appear so that the value of less conventional studies is emphasized: neo classical functions, desequilibrium models, influence of profitability and of the Tobin's ratio.
However, investment behavior should not be isolated from the numerous elements which contribute, in a way or another, to the production capacities of firms, such as labor training, research and development. In addition, some new distinctions seem quite relevant when one considers the changes firms have to go through in the current période. A good example is "traditional" investment as opposed to investment in computer systems or computer assisted devices and machinery.
JEL: 132-122-211
The Investment behavior of french firms : a questionning analysis, by Michel Norotte, Pierre Morin, Gilbert Venet. The purpose of this article is the analysis of the investment behavior of french firms. French firms invested very actively before the first "oil shock", but their investment behavior can be considered somewhat disappointing since the second "oil shock", if compared with the other main countries of the Oecd. The article points out the deterioration of corporations' financial situation until 1982 and the recovery thereafter. It also tries to summarize the various econometric works dealing with the influence of anticipated demand, relative price of factors and profit as determinants of investment. Many difficulties appear so that the value of less conventional studies is emphasized: neo classical functions, desequilibrium models, influence of profitability and of the Tobin's ratio. However, investment behavior should not be isolated from the numerous elements which contribute, in a way or another, to the production capacities of firms, such as labor training, research and development. In addition, some new distinctions seem quite relevant when one considers the changes firms have to go through in the current période. A good example is "traditional" investment as opposed to investment in computer systems or computer assisted devices and machinery. JEL: 132-122-211