US Fixed Private Investments: an Econometrical Study

This thesis analyzes the determinants of Fixed Private Investment (FPI) in the United States using econometric methods. A time series approach is employed to assess both short-term and long-term investment drivers, including Consumer Confidence Index (CCI), Corporate Tax Rate (CORPTAXRATE), Consumer Price Index (CPI), Federal Funds Rate (FEDFUNDS), Net Private Savings (NPS), Population (POP), and Unemployment Rate (UNRATE). Stationarity tests confirm integration properties, and the Engle-Granger cointegration test establishes a stable long-run relationship. A static model, estimated via Ordinary Least Squares (OLS), captures long-term dynamics, while an Error Correction Model (ECM) measures short-term adjustments. Findings indicate that investment is primarily influenced by fiscal policies, inflation, and macroeconomic stability. Policy recommendations emphasize the role of structural reforms and monetary policies in fostering a stable investment environment.