Tobin's Q, Investment, and the Endogenous Adjustment of Financial Structure

Osterberg, William P.

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Working Paper

Tobin's Q, Investment, and the Endogenous Adjustment of Financial Structure

William P. Osterberg

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An analysis of a q model of investment in which financial structure affects firm value, using a perfect foresight model of general equilibrium that includes a debt-related agency cost; uses the comparative statics and dynamics of changing the corporate tax rate as an illustration.

04.01.1988WP 88-01

Suggested Citation

Osterberg, William P. 1988. “Tobin's Q, Investment, and the Endogenous Adjustment of Financial Structure.” Federal Reserve Bank of Cleveland, Working Paper No. 88-01.

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