We compare the ability of three measurement error remedies to deliver unbiased estimates of coefficients in investment regressions. We examine high-order moment estimators, dynamic panel estimators, and simple instrumental variables estimators that use lagged mismeasured regressors as...

Tobin's q is widely accepted as proxy for an underlying quot;truequot; q, which is assumed to characterize a firm's incentive to invest. Researchers have developed numerous methods for computing q. This paper assesses the measurement quality of different proxies for q. We adapt the...

We consider a multiple mismeasured regressor errors-in-variables model. We develop closed-form minimum distance estimators from any number of estimating equations, which are linear in the third and higher cumulants of the observable variables. Using the cumulant estimators alters qualitative...

We revisit the problem of error-laden proxies being used for 'q' in regressions of investment on cash flow and q. We give a menu of different prior information sets that can identify the sign of the coefficient on cash flow or the sign of the difference in cash-flow coefficients between groups...