Aggregate investment

A distinction is also made between the current period of production (period 1) and the subsequent period of production (period 2). The aggregate investment demand of 500 is explicitly shown as relating to the expansion of means of production in period 2. This is net investment, additional to the replacement of means of production used up in period 1. 

Full disclosure of S E data is estimated to decrease U.S. pharmaceutical firms R D expenditures by 56 million or up to 4.7 percent of recent levels of R D. The impact on R D investment is a consequence of increased competition in the industry and the accompanying shifts in sales from innovators to other U.S. firms and to foreign firms. Innovative or research-intensive firms in the aggregate invest a higher proportion of sales into R D than other U.S. firms. The estimated potential loss in sales of all U.S. firms is approximately 600 million, an event which would occur over a multi-year period," (18)... 

Despite an intensive research effort over the past two decades involving many innovative approaches in the global academic community and by the pharmaceutical industry, the latter representing an aggregate investment in excess of 2.5 billion, the only new opioid-based pain medications either in clinical development or on the market are alternative dosage forms of the classical opioids, morphine, loperamide, and fentanyl, or compounds such as tramadol. ... 

On the other hand, there are thirteen commercial "SNG from Petroleum" plants currently operating in the U.S. Total design capacity of all thirteen plants is 1,334.5 million cubic feet per day or about 0.5 trillion cubic feet per year. The aggregate investment cost for all plants was approximately 650 million. 

Assume that the identical rate of expatriate Chinese financial support continued during the years 1965-78 in this form of investment, augmented only by a 10 percent inflation factor, highly conservative for the area. The aggregate investment during 1965-78 would amount to 6.3 billion, in joint operations with the PRC. Assume a 40 percent annual profit margin on this investment,... 

At first sight, it seems somewhat contradictory that the aggregate capital stock decreases (0.04%) while aggregate investments increases (0.04%). This is nevertheless an effect of assumed fixed investment/capital ratios in each industry and the fact that a decline capital stocks in industries with relatively low investment/capital rates weigh more in the total result than increasing capital stocks in industries with relatively large investment/capital ratios. 

Functional Restrictions. The focus is on the industrial investor (and innovator) and his strategic behaviour under conditions of rivalry, whereby the causes and effects of macro-economic, demand side induced investment are neglected. Here, the word induced implies either induced by temporary macro-economic effects, such as differences between aggregate saving S(Yf) and aggregate investment I (Y ) or induced by temporary disequilibria on the demand side, such as differences between successive levels of total consumption Q - Q 1 or total income Y - Y i. 

These aggregated, or macro, cui ves are especially useful for policymakers because they show the potential tradeoffs between energy consei vation policies and investments in new supplies. This is otherwise difficult because most energy conservation measures are small, highly dispersed, and cannot be instantly undertaken, while energy supplies (such as power plants) typically appear in a few large units. 

Lunec, J., Blake, D.R., McCleary, S.J., Brailsford, S. and Bacon, P.A. (1985). Self-perpetuating mechanisms of immunoglobin G aggregation in rheumatoid inflammation. J. Clin. Invest. 76. 2084-2090. 

A formal comparison between a system of grants or rewards and that of patents was presented recently by Shavell and Ypersele.22 In their article they present a review of the two systems and the theoretical positions of each of them. They state that under the system of grants, insofar as there would be no welfare loss as a result of monopoly prices, the only deviation from optimal allocation would be in relation to the incentive to invest in research. This incentive can be ambivalent. If the social or aggregate surplus is greater than the reward or grant there will be insufficient incentives, and vice versa. Either of these two possibilities may occur, as the optimal reward is equal to the expected surplus under different demand curves. 

This emphasis on the importance of aggregate demand suggests a multiplier relationship. In Keynesian terms, the aggregate demand for capital goods produced by Department 1 can be defined as investment demand. Since this demand provides for future expansion of means of production, in the current period of production it can reasonably be assumed to be exogenous, not dependent upon any current parameters or constraints. The multiplier provides a possible way of capturing the structural relationship between investment demand and the aggregate income of the economy. 

These macroeconomic questions are posed for a model under which proportionality between Departments 1 and 2 is assumed. Consider again (5.10), which exposes the contradiction in the Domar model between absolute amounts of investment, which create new capacity and changes in investment that drive the required amount of aggregate demand. There you see that investment (/) is made up of increments in constant and variable capital, new goods produced by both departments of production. Similarly, the share of surplus value (e) is derived from the value of labour power, which measures the value of inputs (produced in both departments) congealed in worker consumption goods. These macroeconomic terms aggregate across the two departments they transcend the more micro question of proportionality between the two departments. 

Using Marx s reproduction schema, Kalecki derives an aggregate relationship between profits and capitalist expenditures.2 As demonstrated in Chapter 3, under the assumption of zero savings on the part of workers, an aggregate identity is established between profits, capitalist consumption and investment, which is shown as... 

First, the Domar model exposes the stringent requirements on aggregate demand that are associated with balanced growth. Whereas new capacity is generated by absolute levels of investment, a matching aggregate demand requires investment to increase. Domar identifies the problem of demand at... 

Figure 14.18 shows the average specific hydrogen costs (including feedstock, production, transport and refuelling), and the cumulated investment in hydrogen infrastructure aggregated for all countries for the FlyWays base case scenario. 

Moake, J. L., Turner, N. A., Stathopoulos, N. A., Nolasco, L., and Heliums, J. D., Involvement of large plasma von Willebrand factor (vWF) multimers and unusually large vWF forms derived from endothelial cells in shear-stress induced platelet aggregation. J. Clin. Invest. 78,1456-1461... 

On the other hand, there is more recent economic literature on racing behavior as applied to research activities. An important conclusion is that in a winner take all situation, there can be overinvestment in research activities. The reason is that the prospective gains may be less than the aggregate amount of the investment undertaken to achieve these gains. 

A key to this condensation step is to think primarily in terms of what the decision maker or investor needs to know to make a decision in your favor. Thinking in these terms usually (a) eliminates technical detail unrelated to competitive advantage, (b) boils financials down to aggregate numbers and key profitably statistics such as time to breakeven and return on investment, and (c) increases the use of familiar products and companies as analogies. 

Leung, L. L. (1984). Role of thrombospondin in platelet aggregation./. Clin. Invest. 74, 1764-1772. 

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