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Goldene Jahre? Zu den Investitionen in der Weimarer Republik
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 114 (1994), Iss. 1 : pp. 99–111
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Ritschl, Albrecht
Abstract
The paper reexamines an estimation by Voth 1993 of the determinants of aggregate investment in interwar Germany. It is shown that his theoretical approach is doubtful. His results, which assign only an insignificant role to profits as determinants of investment, are shown to hinge on a structural break in the transition to Nazi economic planning. Reestimating profit-dependent investment hypotheses we find clear evidence of an influence of profits on investment during the interwar years. Therefore Voth's results are also questionable as a refutation of the socalled Borchardt hypothesis of a wage-induced investment squeeze during the Weimar Republic.