We revisit the empirical performance of the Q theory of investment, explicitly taking into account the frequency … dependence of investment, Tobin's Q, and cash flow. The time series are decomposed into orthogonal components of different … frequencies using wavelet multiresolution analysis. We find that the Q theory fits the data much better than might be expected …

The investment literature has long acknowledged the time- and frequency-varying dynamics of the relationship between … investment, Tobin's Q and cash flow. In this paper, we use continuous wavelet tools to estimate and assess the relationship … complementary sources of information for investment, the former being more important for firms' investment decisions in the medium …

This paper derives an optimal investment function that combines Tobin's q with Goodwin's nonlinear accelerator. It … provides microfoundations to the backward looking behavior of investment in Goodwin's model, and simultaneously allows the …

The paper develops a model of firm's investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm's investment. Firm's investment is an increasing function of the firm's marginal q …, however the investment function is characterized by an upper bound that depends on the firm's borrowing capabilities. The firm …

The paper develops a model of firm´s investment under uncertainty with financial market imperfections and analyzes the … effects of financial constraints on firm´s investment. Firm´s investment is an increasing function of the firm´s marginal q …, however the investment function is characterized by an upper bound that depends on the firm´s borrowing capabilities. The firm …