中级宏观经济学(英文)18-Investment.pptVIP

Intermediate Macroeconomics Lecture 18 Investment Business fixed investment Equipment and structures that businesses buy to use in production Residential investment New housing that people buy to live in and that landlords buy to rent out Inventory investment Goods that business put aside in storage, including materials and supplies, work in process, and finished goods Investment Investment Business Fixed Investment Neoclassical model of investment I, MPK, i-rate, tax rules Production firms rental firms Business Fixed Investment The rental price of K (production firms) MC=MB MB: how many products 1 unit K generates --- MPK MC: how many products 1 unit K costs --- (R/P) MPK=R/P Business Fixed Investment Assumption: MPK↓ as K ↑ Business Fixed Investment Cobb-Douglas production function Business Fixed Investment The cost of K (rental firms) You purchased a car for RMB150,000 and start up your car-rental business. 1 yr later, the same car is sold at RMB100,000. The depreciation rate for the car in the 1st yr is 30%. The market i-rate is 2%. What is the cost of your business this yr? Business Fixed Investment Interest cost --- Change in P of K --- Depreciation --- Cost of K: Business Fixed Investment The determinants of investment (rental firms) Profit rate = revenue – cost Business Fixed Investment Business Fixed Investment Tax and investment Corporate income tax (tax on profits) --- definition of “profit” --- current/historic value for depreciation The investment tax credit --- reduces firm’s tax by a certain amount for each $ spent on capital goods Business Fixed Investment 企业所得税： 金融保险企业5% 内地33% 沿边沿疆沿海24% 特区15% 西部地区15% 外资企业减半（不足10%按10%征收） Business Fixed Investment 国务院批准的高新技术产业开发区： 15% 第三产业企业：一定期限内减免 利用废弃物为主要原料的：五年内减免 “老、少、边、穷”地区新办企业：三年内减免 技术转让，自然灾害，安置就业，校办工厂，福利生产企业…… （增值税） Business Fixed Investment Tobin’s q --- Investment decision q = market value of installed K/replacement cost of installed K q1: buy more capital as K wear