Artikel
On the long-run equilibrium value of Tobin's average Q
This note considers Tobin's average Q in a framework where firms finance investment by equities and debt. The determination of its long-run equilibrium value Q° is based on positing equality of the loan rate and, adjusted for a risk premium, the return on equities. Q° can thus be characterized as a ratio of two rates representing the somewhat modified interest costs and profits of the firms. The familiar benchmark value Q° = 1 obtains if another condition on the risk premium holds true, which may or may not be the case. An elementary numerical check demonstrates that possible deviations of Q° from unity are not overly dramatic.
- Sprache
-
Englisch
- Erschienen in
-
Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 13 ; Year: 2016 ; Issue: 1 ; Pages: 103-113
- Klassifikation
-
Wirtschaft
Mathematical Methods
Expectations; Speculations
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
- Thema
-
Tobin's average Q
debt and equity financing
no-arbitrage condition
fundamentalist trader
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Franke, Reiner
Yanovski, Boyan
- Ereignis
-
Veröffentlichung
- (wer)
-
Edward Elgar Publishing
- (wo)
-
Cheltenham
- (wann)
-
2016
- DOI
-
doi:10.4337/ejeep.2016.01.09
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Franke, Reiner
- Yanovski, Boyan
- Edward Elgar Publishing
Entstanden
- 2016
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