Monthly Investment Update November 2020 · Accelerator Mid-Cap Fund November 2020 # # 1 Fund,,-,-
Accelerator Theory of Investment
-
Upload
stgeorge-aruvithura-college -
Category
Economy & Finance
-
view
272 -
download
69
Transcript of Accelerator Theory of Investment
![Page 1: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/1.jpg)
![Page 2: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/2.jpg)
![Page 3: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/3.jpg)
![Page 4: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/4.jpg)
![Page 5: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/5.jpg)
![Page 6: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/6.jpg)
![Page 7: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/7.jpg)
![Page 8: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/8.jpg)
Autonomous Investment
Induced Investment
![Page 9: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/9.jpg)
National Income
Inve
stm
ent
I`I
National Income
Inve
stm
ent I`
I
![Page 10: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/10.jpg)
![Page 11: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/11.jpg)
C = R1/1+r + R2/(1+r)2 + R3/(1+r)3 + ....... + Rn/(1+r)n
C = SUPPLY COST OR THE REPLACEMENT COST
R= ANNUAL PROSPECTIVE YEILDS FROM THE CAPITAL ASSET
r = MEC
![Page 12: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/12.jpg)
![Page 13: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/13.jpg)
![Page 14: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/14.jpg)
Period OutputIncome
Required Stock of Capital
CapitalReplacement
Net Investment
Gross Investment
t -1 500 1500 300 0 300
t 510 1530 300 30 330
t + 1 525 1575 306 45 351
t +2 550 1650 315 75 390
t +3 575 1725 330 75 405
t + 4 575 1725 345 0 345
t +5 560 1680 345 -45 300
![Page 15: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/15.jpg)
Kt = Stock of Capital for time t
Net Investment = Kt – Kt -1
Gross Investment = Capital Replacement + Net Investment V = Constant
Here, we take the Value of V as 3
ASSUMPTIONS: -
1. CAPITAL OUTPUT RATIO WILL ALWAYS BE CONSTANT.
2. DEPRECIATION THAT TAKES PLACE IN THE STOCK OF CAPITAL WILL BE 1/5 TH OF THE STOCK EXSISTING IN THE PREVIOUS YEAR, THUS, 1/5 TH OF THE STOCK OF THE CAPITAL SHOULD BE REPLACED EVERY YEAR.
![Page 16: Accelerator Theory of Investment](https://reader031.fdocuments.in/reader031/viewer/2022012312/55a528151a28abea0e8b491d/html5/thumbnails/16.jpg)