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The Facts About Time: To-Build
Author:
Ms. Petya Koeva Brooks
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Series:
IMF Working Papers
Volume/Issue:
Volume 2000: Issue 138
Language:
English
Publication Date:
01 Aug 2000
DOI:
https://doi.org/10.5089/9781451855975.001
ISBN:
9781451855975
ISSN:
1018-5941
Pages:
22
Keywords:
WP; industry dummy; investment data; utilities industry; plant construction; industry publication; Time-to-build; investment; Compustat firm; point of view; company news; industry composition; transportation industry; Business cycles; Unemployment rate; Data collection; Transportation
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper presents new empirical evidence about the process of plant investment. Using newspaper and trade journal articles, the author collects and analyzes time-to-build data for a sample of Compustat firms. These data suggest that the average construction lead time for new plants is around two years in most industries. Business cycle fluctuations do not affect the length of time-to-build. The investment lead times are generally not sensitive to the size of the projects. Only nine percent of the firms in the sample deviate from their investment schedules and delay or abandon their projects.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund