TY - BOOK ID - 84541732 TI - Fixed Capital Adjustment : Is Latin America Different? Evidence from the Colombian and Mexican Manufacturing Sectors AU - Gelos, Gaston. AU - Isgut, Alberto. PY - 1999 SN - 1462332862 1452708908 1281602957 1451894767 9786613783646 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Econometrics KW - Investments: Stocks KW - Macroeconomics KW - Industries: Manufacturing KW - Production and Operations Management KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Microeconomic Analyses of Economic Development KW - Economic Development: Financial Markets KW - Saving and Capital Investment KW - Corporate Finance and Governance KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Discrete Regression and Qualitative Choice Models KW - Discrete Regressors KW - Proportions KW - Industry Studies: Manufacturing: General KW - Price Level KW - Inflation KW - Deflation KW - Macroeconomics: Production KW - Investment & securities KW - Econometrics & economic statistics KW - Manufacturing industries KW - Stocks KW - Logit models KW - Manufacturing KW - Producer price indexes KW - Productivity KW - Financial institutions KW - Econometric analysis KW - Economic sectors KW - Prices KW - Production KW - Econometric models KW - Price indexes KW - Industrial productivity KW - Colombia UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541732 AB - This paper examines capital adjustment patterns using two large and largely novel data sets from the manufacturing sectors of Colombia and Mexico. The findings show that investment patterns in these countries resemble those reported for the United States to a surprising extent. Capital adjustments beyond maintenance investment occur only rarely, but large spikes account for a significant fraction of total investment. Although duration models do not provide strong evidence for the presence of substantial fixed costs, nonparametric adjustment function estimates reveal the presence of irreversibilities in investment. These irreversibilities are important for understanding aggregate investment behavior. ER -