Open AccessThe Overhang of Structures before and since the Great Recession
Author(s) -
Margaret Jacobson,
Filippo Occhino
Publication year - 2014
Publication title -
economic commentary (federal reserve bank of cleveland)
Language(s) - English
Resource type - Journals
eISSN - 2163-3738
pISSN - 0428-1276
DOI - 10.26509/frbc-ec-201404
Subject(s) - recession , investment (military) , great recession , debt overhang , monetary economics , economics , keynesian economics , macroeconomics , political science , politics , debt , internal debt , law
Investment in structures is still 29 percent below its pre-recession peak. Using a new indicator of the level of structures that would be warranted by economic conditions, we find evidence that the level of investment was too high in the first half of the 2000s. This overinvestment created an overhang of structures which has held down the growth of investment in structures during the recovery.
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