inflation rate, with and with- out an increase in the risk premium on equities, was then simulated with a number of model … cost was 3 percentage points less than that for corporate capital) and the manner in which inflation magnifies it (the … finance instruments would overcome this reallocation but at the expense of corporate capital. Only a reduction in inflation or …

's q theory of investment. As Tobin has explained, aggregate investment can be expected to depend in a stable way on q, the … return on physical capital raise its market value and cause increased investment until equilibrium is restored. Although … models linking the stock market to investment have been estimated, they have not previously been used to examine the impact …

This paper presents econometric evidence on the effect of tax incentives on business Investment in the United States in … the period from 1953 through1978. The analysis emphasizes that the Interaction of inflation and existing tax rules has … contributed substantially to the decline of business investment since the late 1960's.Because the investment process is far too …

consumption or investment. In this way, aggregate demand would be maintained by substituting public consumption for private … JamesTobin, relies on increasing the rate of inflation and making money less attractive relative to real capital. In Tobin …. This paper will examine ways of increasing capital intensity without raising the rate of inflation. The analysis will also …

evidence that incentive schemes affect real investment and sheds new light on challenges faced by economic reforms in China …-specific costs of capital. We show that SOEs did respond to the performance evaluation reform by altering their investment decisions …

) firm-specific factors. Applying this method to manufacturing firms in China reveals a modest role for adjustment costs and … account for a limited fraction of observed misallocation in China, but a potentially large share for US firms …

last two decades is highly correlated with that of corporate investment efficiency. China's stock market appears to be … access it. Yet this high alpha amounts to an inflated cost of equity capital, constraining the investment of China's smaller … informativeness will be important to increase China's investment efficiency and fuel its continued economic growth. Finally, we …

value on firm investment. Working with unique data on land values in 35 major Chinese markets and a panel of firms outside … the real estate industry, we estimate investment equations that yield no evidence of a collateral channel effect. One … reason for this stark difference appears to be that some of the most dominant firms in China are state-owned enterprises …

Recent writings on China's water situation often portray China's water problems as severe and suggest that water … availability could threaten the sustainability of China's future growth. However, China's high growth of the last 20 years or more … accounting approach to investigate both the contribution played in the past by water availability in constraining China's growth …

Despite a vast accumulation of private capital, China is not embracing capitalism. Deceptively familiar capitalist … introduces the chapters comprising the NBER volume Capitalizing China (Fan and Morck, eds. 2012), which examine China's high … consider policy alternatives the CCP might consider if its goal is China's elevation into the ranks of high income countries …