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

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 …

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 …

'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 …

Three ways of averting "excess saving" have been emphasized in both theory and practice. The thrust of the Keynesian … 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 …

. The implications of the theory both for measurement and government policy are examined …