This paper seeks to explain the investments made by Brazilian firms operating in the capital market, using a modified accelerator model. The modification done in the basic model was the substitution of either the aggregate consumption or the capital stock by the firms' sales value. The parameters of the model were estimated by ordinary least squares using cross-sections. The application of such analysis to the selected sample allowed us to verify a strong correlation between investment expenditures and sales level. Based on these results, we can estimate changes in investments from one year to another. This is extremely important due to the simplicity of the model.
Accelerator Model; Investment
