Archive | Private Investment

The following points highlight the top seven measures used to stimulate private investment. The measures are: 1. Tax Concession 2. Government Spending 3. Pump Priming 4. Reduction of the Rate of Interest 5. Stability of Wage Level 6. Price Policy 7. Abolition of Monopoly Privilege. Measure # 1. Tax Concession: It is argued that tax concessions allowed on company and [...]

Let us make an in-depth study of the determinants of private investment. Private investment (or induced investment) depends upon expected profitability or marginal efficiency of capital which, in turn, depends upon future expectations that are often fluctuating violently. Hence, private investment becomes highly capricious it is very high in boom periods and low in the period of depression. Private investment [...]