Arbeitspapier
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 Qo is based on positing equality of the loan rate and, adjusted for a risk premium, the return on equities. Qo 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 Qo=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 Qo from unity are not overly dramatic.
- Sprache
-
Englisch
- Erschienen in
-
Series: FinMaP-Working Paper ; No. 49
- 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 traders
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Franke, Rainer
Yanovski, Boyan
- Ereignis
-
Veröffentlichung
- (wer)
-
Kiel University, FinMaP - Financial Distortions and Macroeconomic Performance
- (wo)
-
Kiel
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 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
- Arbeitspapier
Beteiligte
- Franke, Rainer
- Yanovski, Boyan
- Kiel University, FinMaP - Financial Distortions and Macroeconomic Performance
Entstanden
- 2015
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