Denmark Selected Issues

This Selected Issues paper analyzes investment slowdown in Denmark. The post-global financial crisis (GFC) weakness in Denmark’s aggregate investment cannot be fully explained by the output slowdown. The baseline accelerator model confirms that output slowdown played a role, but post-GFC investment...

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Bibliographic Details
Corporate Author: International Monetary Fund European Dept
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2018
Series:IMF Staff Country Reports
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Denmark  |b Selected Issues 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2018 
300 |a 75 pages 
651 4 |a Denmark 
653 |a Inflation 
653 |a Wealth 
653 |a Economics 
653 |a Income 
653 |a Pension spending 
653 |a Finance 
653 |a Social Security and Public Pensions 
653 |a Public finance & taxation 
653 |a Saving 
653 |a Corporations 
653 |a Deflation 
653 |a Aggregate Factor Income Distribution 
653 |a National accounts 
653 |a Expenditure 
653 |a Asset prices 
653 |a Price Level 
653 |a Financial markets 
653 |a Business Taxes and Subsidies 
653 |a Consumption 
653 |a Corporate & business tax 
653 |a Corporate Taxation 
653 |a Pensions 
653 |a Prices 
653 |a Macroeconomics 
653 |a Macroeconomics: Consumption 
653 |a Taxation 
653 |a Commodity markets 
653 |a Public Finance 
653 |a Finance: General 
710 2 |a International Monetary Fund  |b European Dept 
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520 |a This Selected Issues paper analyzes investment slowdown in Denmark. The post-global financial crisis (GFC) weakness in Denmark’s aggregate investment cannot be fully explained by the output slowdown. The baseline accelerator model confirms that output slowdown played a role, but post-GFC investment has fallen beyond the level explained by output movements in most of the post-GFC period. Most recently, investment converged to the level explained by output movements. The augmented accelerator model suggests that additional factors, such as high leverage, weak competition, and elevated policy uncertainty, also had a significant impact. Panel regressions using a panel of advanced economies show that reduction in leverage and product market reforms can boost investment in the medium term. Well-designed policies are needed to boost private investment