Tobinovo Q - teorie a aplikace

Tobin´s Q - theory and application

Václava Pánková

Politická ekonomie, 2005, vol. 2005, issue 5, 601-608

Abstract: Investment expenditure relates to an evident optimization problem: to create an optimal capital stock which is a function of expected profits. According to the Tobin's Q - theory, investment depends on the ratio Q of the market value of business capital assets to their replacement value. A firm's investment should rise with its Q. In practice, however, Q is not observable and the measurement of numerator as well as of denominator presents problems in empirical implementation. Looking for an appropriate approach, both macroeconomic and microeconomic level can be followed. The macroeconomic Q can be derived from the Keynes equation for the price level. Tobin's Q is given here as a measure of the economy's willingness to invest (Mundschenk, 2000). As for the firms, a VAR model is estimated using panel data. Relevant forecasts enable to quantify an expected value of a firm even in case that it is not quoted on stock markets (Behr and Bellgardt, 2002). To characterize a macroeconomic background, the Q of the Czech Republic was computed. Than, the panel data approach was applied to the Czech machinery. The Qs were computed with an evident majority of negative values and a zero correlation to investment, when following the detailed panel structure. A high degree of zero investment might be a signal for policy makers which seems to be recognized by governmental authorities as a necessity of foreign - investment supporting policy.

Keywords: implementation of Q; panel data; Tobin´s Q; behaviour of firms ? investment (search for similar items in EconPapers)
JEL-codes: C33 D21 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.524.html (text/html)
http://polek.vse.cz/doi/10.18267/j.polek.524.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpol:v:2005:y:2005:i:5:id:524:p:601-608

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.524

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().