Answers are grounded in this paper and cite their sources.
We examine the causality and influence of residential and non‐residential investment with respect to GDP and its components in a multivariate, vector autoregressive context, with some care devoted to the appropriate orthogonalization of the shocks which drive the various components of GDP. We find that residential investment shocks are more important in the determination of GDP than non‐residential investment shocks.
No takes yet. Share an insight, caveat, or question.
Coulson et al. (2000) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: