Integrating Tobin's Q with Goodwin's Nonlinear Accelerator
|Author(s):||Joao Ricardo Faria|
|Date of publication:||May 2000|
|Working paper number:||104|
This paper derives an optimal investment function that combines Tobin's q with Goodwin's nonlinear accelerator. It provides microfoundations to the backward looking behaviour of investment in Goodwin's model, and simultaneously allows the study of Tobin's q into a business cycle model.
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