induced investment

induced investment

that part of an increase, or decrease, in real INVESTMENT that is brought about by a change in the level of NATIONAL INCOME. For example, a rise in national income accompanied by increased consumption spending that puts pressure on existing supply capacity will encourage businesses to invest in new plant and machinery. See ACCELERATOR, INVESTMENT SCHEDULE, AUTONOMOUS INVESTMENT.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
In the last three years TISS support has created 349 jobs in North Wales, safeguarded a further 54, and has induced investment in the region's tourism sector of PS10.4m.
However, for growth to be sustained in the long term, Japan needs to regain its competitiveness, which requires structural transformation, because a weaker yen and/or government induced investment and job creation can only provide a temporary solution for Japan's economic problems.
They maintain a virtuous cycle induced by investment where consumption increase induced investment, which stimulates further growth of GDP and consumption.
In Part V, I follow a debate whether induced investment in machines could promote economic growth in the United States.
The induced investment argument assumes that potential migrants (or their parents) believe that good preparation at home will increase their chances of reaping the economic bonanza associated with going abroad.
The thesis explores the relationship between induced investment, the constraints of financing investment, market structure, and the determinants of aggregate demand and business cycle performance.
However, he made it quite clear that this only related to induced investment. In the letter to me his reaction to my suggestion that entrepreneurs might take a longer view is to say that, if this occurs, the effect is to shift some investment from the induced to the autonomous category.
(a) For y > 0, the manager's induced investment choice increases with the signal-contingent expected productivity of capital, and decreases with the incentive rate, the manager's risk aversion, his post-decision risk, and the capital charge, i.e., [dq.sup.[dagger]]/dy > 0, [dq.sup.[dagger]]/d[nu] < 0, [dq.sup.[dagger]]/[db.sub.a] < 0, [dq.sup.[dagger]]/d[[tau].sub.p.sup.2] < 0, and [dq.sup.[dagger]]/d[GAMMA] < 0.
When we talk of fixed excess capacity, induced investment becomes relevant as investment is induced by past changes in the level of output.
If [mu] > 0, then induced investment also plays a role.
There is an additional contribution to dynamic gains from induced investment in response to cheaper imported capital equipment (once home protection is removed) and as new export opportunities arise.
The SEC's complaint further alleges that Meadlin and Hyaline fraudulently induced investments from at least two clients using the false performance and AUM data.