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Expectations in a dynamic investment model : survey evidence from Kenya and Zimbabwe (Английский)

The theoretical literature on investment stresses the role of expectations, but in empirical work data on expectations are rarely available. This paper draws on survey data for manufacturing firms in Kenya and Zimbabwe to assess the importance of expectations for investment decisions. The paper finds large inter-firm differences in expectations concerning exchange rates and interest rates. Estimating a modified Euler equation the paper finds a substantial...
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