Cover IMF Working Papers
Investment Slowdown in Denmark: Diagnosis and Policy Options
Author:
Mr. Tigran Poghosyan
Search for other papers by Mr. Tigran Poghosyan in
Current site
Google Scholar
PubMedClose
Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 161
Language:
English
Publication Date:
12 Jul 2018
DOI:
https://doi.org/10.5089/9781484367537.001
ISBN:
9781484367537
ISSN:
1018-5941
Pages:
41
Keywords:
WP; investment; model; Denmark; accelerator model; leverage; structural reforms; product market reform; investment slowdown; IMF staff calculation; OECD EU country; investment growth; Commodity markets; Gross fixed investment; Global financial crisis of 2008-2009; Labor productivity; Private investment; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (2.2 MB) Download Epub
Total investment in Denmark has experienced a sharp slowdown following the global financial crisis. This slowdown has coincided with a decline in labor productivity and expansion of the current account surplus. This paper presents stylized facts summarizing the investment slowdown followed by an empirical analysis identifying its drivers. The results suggest that the decline in output has contributed to investment slowdown, consistent with predictions of the accelerator model. However, other factors, including high leverage and structural rigidities in product markets, also played a role.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2018: Issue 161