The Facts About Time: To-Build
Electronic Access:
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Summary:
This paper presents new empirical evidence about the process of plant investment. Using newspaper and trade journal articles, the author collects and analyzes time-to-build data for a sample of Compustat firms. These data suggest that the average construction lead time for new plants is around two years in most industries. Business cycle fluctuations do not affect the length of time-to-build. The investment lead times are generally not sensitive to the size of the projects. Only nine percent of the firms in the sample deviate from their investment schedules and delay or abandon their projects.
Series:
Working Paper No. 2000/138
Subject:
Business cycles Data collection Economic and financial statistics Economic growth Labor National accounts Transportation Unemployment rate
English
Publication Date:
August 1, 2000
ISBN/ISSN:
9781451855975/1018-5941
Stock No:
WPIEA1382000
Pages:
22
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