We also show that the quantitative effects of the stochastic interest rates and capital illiquidity on investment, Tobin’s average q, the duration and user cost of capital, and the value of growth opportunities are substantial. These findings are particularly important in today’s low interest ...
We also show that the quantitative effects of the stochastic interest rates and capital illiquidity on investment, Tobin's average q, the duration and user cost of capital, as well as the value of growth opportunities are substantial. These findings are particularly important in today's low ...
(1989). 'Tobin's q, Investment and the Endogenous Adjustment of Financial *Structure', Journal of Public Economics, 40(3), 293-319... WP Osterberg - 《Journal of Public Economics》 被引量: 50发表: 1989年 Tobin's q Tobin's q is the ratio of the market value of a firm to the rep...
We also explore the model's implications concerning the effects of aggregate demand, interest rates, and tax rates. Finally, an empirical study on the firm size distribution is provided using US firm-size data. We utilize two different approaches, Kernel density estimation and Markov chain ...
businesses’spendingonequipmentandstructuresforuseinproduction.▪Residentialinvestment居住投资:purchasesofnewhousingunits(eitherbyoccupantsorlandlords).▪Inventoryinvestment存货投资:thevalueofthechangeininventoriesoffinishedgoods,materialsandsupplies,andworkinprogress.U.S.investmentanditscomponents Billions2000of19961750...
The model predicts that weaker investor protection results in overinvesting, lower Tobin's q, higher return volatility, higher risk premiums, and higher interest rates. Perfecting investor protection would result in an upward revaluation of 2.49 percent for the U.S. market and 21.96 for the ...
Q: The reasons to study investment z A1 the combination of firm’s investment demand and households’ saving supply determines how much of an economy’s output is invested; investment demand is crucially important to the standards of living over the long run.z A2 investment is highly ...
Using the FHP setup, future investment rates are regressed against Tobin’s Q, the interaction of Tobin’s Q and price informativeness, and control variables. Each individual price informativeness measure is introduced separately in the baseline setup. Interestingly, we find that the point estimate ...
They found that the monetary easing policy worked through the interest rate channel but the effect of the balance sheet channel was interrupted because of the deterioration in balance sheet conditions. Because they use accelerator investment functions, and not Tobin's q investment functions, their ...
The ITC reduces a firm’s taxes by a certain amount for each dollar it spends on capital. Hence, the ITC effectively reduces PK which increases the profit rate and the incentive to invest. Tobin’s q numerator: the stock market value of the economy’s capital stock. ...