In this paper I analyze the relationships among investment, q, and cash flow in a tractable stochastic model in which … regressions of investment on q and cash flow. In empirical studies, the estimated cash-flow coefficient is generally positive and …

This paper presents closed-form solutions for the investment and valuation of a competitive firm with a Cobb … distribution of future price increases investment. An increase in the scale of the random component of a price can increase …, decrease or not affect the rate of investment depending on the sign of the covariance of this price with a weighted average of …

convex cost of adjustment. A baby boom increases national saving and investment and thus causes an increase in the price of …. Social Security can potentially affect national saving and investment, though in the long run, it does not affect the price …

This paper presents an overview of current models of consumption and investment behavior. First, the stochastic … critical discussion of the Ricardia Equivalence Theorem. Investment behavior is analyzed using a dynamic optimization model of … theory. The model is then used to analyze the interaction of corporate taxes, inflation and investment and also to analyze …

. Alternatively, if the cash-in-advance constraint applies to gross investment as well as consumption, then a permanent increase in …

volume of investment. Its application to the United States economy and the economies of other major OECD nations suggests …