This was the impetus for deciding to delay issuance of our next round of proposals for Basel II. The agencies' reaction to the QIS4 results should signal how seriously we are taking the Basel II effort and how we are striving to implement it correctly. The results from QIS4 show the continued benefit of conducting periodic quantitative impact studies.
That should have produced a boom in investment, which seems not to have happened. This shock computes the magnitude of this “missing effect” by simulating the effect of an increase in the financial cost of capital. RPD affects the user cost of capital for the model’s four investment categories: equipment, intellectual property, nonresidential structures and inventories.