Read the article by Larry Neal (1969), "Investment Behavior by American Railroads: 1897-1914" in The Review of Economics and Statistics (http://sendanywhe.re/GDX57K2P). This paper is a rejoinder to the paper which the rest of the class had for their homework assignment from Kmenta and Williamson (1966). Without worrying too much about the specifics of the econometrics (although they are very simple), answer the following:

1. What is his main conclusion regarding investment behaviour by firms in the railroad industry over this period? Are there differences based on which years he examined?
2. How does this relate to the investment function derived by Mankiw (Macroeconomic Book)?