01839cas a2200253 a 4500 AALejournalIMF000870 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451847925 1018-5941 BD-DhAAL BD-DhAAL Gelos, R. Fixed Capital Adjustment : Is Latin America Different? Evidence from the Colombian and Mexican Manufacturing Sectors / R. Gelos, Alberto Isgut. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines capital adjustment patterns using two large and largely novel data sets from the manufacturing sectors of Colombia and Mexico. The findings show that investment patterns in these countries resemble those reported for the United States to a surprising extent. Capital adjustments beyond maintenance investment occur only rarely, but large spikes account for a significant fraction of total investment. Although duration models do not provide strong evidence for the presence of substantial fixed costs, nonparametric adjustment function estimates reveal the presence of irreversibilities in investment. These irreversibilities are important for understanding aggregate investment behavior. Mode of access: Internet Isgut, Alberto. IMF Working Papers; Working Paper ; No. 1999/059 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/059/001.1999.issue-059-en.xml IMF e-Library