Intangible Investment Goods (Belhocine)

IMF published the working paper The Embodiment of Intangible Investment Goods: a Q-Theory Approach by Nazim Belhocine. The paper extends the q-theory of investment to model explicitly the decision of firms to invest in intangibles and measures the contribution of intangible goods to the overall capital stock in the U.S. The model highlights embodiment of intangible goods in tangibles and the role of relative price movements in the measurement of the contribution of each type of investment to the overall capital stock. see: http://www.imf.org/external/pubs/ft/wp/2010/wp1086.pdf