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α: calibrated so average coauthorship-adjusted count equals average raw count
The theory of investment cycles in planned economies is reviewed, and a formal model is presented and tested on data from Eastern Europe and the U.S.S.R. The results suggest that over time consumption has been increasingly protected against fluctuations in investment, and that the relationship between investment and the trade balance has acquired greater significance. This could be interpreted as the result of learning from experience on the part of the planners. The theory that investment decisions are significantly influenced by the overhang of uncompleted projects from past periods was also tested with mixed results. Copyright 1991 by Royal Economic Society.