Aggregate Investment Function

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Aakanksha Kaushik

Abstract

Thispaperattemptsto formulatetheAggregateInvestmentFunction.Inthispaperthe empiricaldatahasnotbeenfittedintoanyonetheoreticalstraightjacket.Itindentifiesthe majorfactorsthatdetermine investment,whichhave beentakenfromdifferenttheoriesof investment.The threemajortheoriesexaminedhereareKeynes' theory,the Accelerator Model and the Neo-Classical TheoryofInvestment.

Thispaperattemptsto formulatetheAggregateInvestmentFunction.Inthispaperthe empiricaldatahasnotbeenfittedintoanyonetheoreticalstraightjacket.Itindentifiesthe majorfactorsthatdetermine investment,whichhave beentakenfromdifferenttheoriesof investment.The threemajortheoriesexaminedhereareKeynes' theory,the Accelerator Model and the Neo-Classical TheoryofInvestment.

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