Francois, Patrick; Lloyd-Ellis, Huw - EconWPA - 2004
It is common amonst macroeconomists to view aggregate investment fluctuations as a rational response to fluctuating …- run, empirical relationships between aggregate investment and measures of investment incentives, such as Tobin's Q, so …. In doing so, we demonstrate the crucial role played by endogenous innovation and incomplete contracting, inherent to the …