JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Tobin’s Q and Sectoral Investment in West Germany and Great Britain
A pooled cross-section and time-series study
Funke, Michael | Wadewitz, Sabine | Willenbockel, Dirk
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 109 (1989), Iss. 3 : pp. 399–420
2 Citations (CrossRef)
Additional Information
Article Details
Funke, Michael
Wadewitz, Sabine
Willenbockel, Dirk
Cited By
-
Asset prices and real investment in West Germany: Evidence from vector autoregressive models
Funke, M.
Empirical Economics, Vol. 14 (1989), Iss. 4 P.307
https://doi.org/10.1007/BF01972455 [Citations: 3] -
Application of the time-varying parameter model to the Q theory of investment
Funke, Michael
Applied Economics, Vol. 22 (1990), Iss. 1 P.97
https://doi.org/10.1080/00036849000000054 [Citations: 3]
Abstract
This paper has explored the determinants of industry investment in a cross-section and time-series study for West Germany and Great Britain. The underlying Q model of investment behaviour is formulated on the basis of profit-maximizing firms which are supposed to be constrained in the product market. The model is estimated for a sample of 12 industries and 11 years (1975 - 1985). The results obtained confirm the view that lagged Q exert a significant influence on investment. Finally, a significant impact of output terms irrespective of Q was found.