Finance Discipline Group
UTS Business School
University of Technology, Sydney

Working Paper Series

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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