Josheski, Dushko and Koteski, Cane and Magdinceva Sopova, Marija (2015) Tobin's q Q and R&D investment in CESEE countries. CEA Journal of Economics, 10 (1). pp. 81-98. ISSN 1857-5250
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Abstract
In this paper Tobin’s and R&D investment issue has been subject of investigation. Tobin’s q quotient is derived
by the ratio of market value (market capitalization of listed companies excluding investment companies and
mutual funds) and replacement value of capital used in production (Adjusted savings: consumption of fixed capital).
Further, the influence of democracy indices Freedom House political rights and Freedom house civil liberties
as proxies for democracy has been investigated along with the some government related variables as well
as other macroeconomic variables. The basic idea of this paper is being derived from Arrow paper. ZviGriliches
first introduced production function that relates market value of the firms, tangible and intangible assets. This
model also can be applied in a small and simple Keynesian framework, where change in capital stock (investment)
is a function of the difference between actual q and normal qi.e. normal q = 1, and some natural growth
rate (actually fitted values of the output growth), when q = q = 1 investment equals savings, i.e. there exists
macroeconomic equilibrium. In the empirical section theories had been tested on a pooled data from sample of
12 CESEE countries.
| Item Type: | Article |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Tourism and Business Logistics |
| Depositing User: | Dusko Josevski |
| Date Deposited: | 11 Nov 2015 11:30 |
| Last Modified: | 11 Nov 2015 11:30 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/14221 |
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