Externalities, endogenous growth and the investment accelerator: some estimates for the Greek manufacturing

Abstract

This paper attempts to provide a brief survey on macroeconomic theories which deal with externalities,
refer to the empirical testing of these theories and investigates the existence of investment accelerator
in Greek manufacturing industry. Investment accelerator could arise as a learning process in the economy,
which implies that agents learn about the state of the economy from the realisation of output and
invest (and probably decide about employment) accordingly. Our aggregate data supports the existence of
investment accelerator but not that of the employment one.