RT Generic
T1 Q investment models, factor complementary and monopolistic competition
A1 Licandro, Omar
A2 Universidad Carlos III de Madrid. Departamento de Economía, 
AB The observed fact that firms invest even if capacities are not fully employed does not fit well into most standard formalizations of optimal firm behavior. In this paper, the q investment approach is adapted to an imperfectly competitive economy where the representative firm is assumed to face demand uncertainty. Nominal rigidities and short-run factor complementarity are imposed as sufficient conditions to allow for the coexistence of investment and excess capacity. Since capacities are underemployed, marginal q is shown to diverge from average q. Finally, excess capacity subsists at steady state which makes it more than a shortrunphenomenon
SN 2340-5031
YR 1991
FD 1991-02
LK https://hdl.handle.net/10016/2794
UL https://hdl.handle.net/10016/2794
LA eng
DS e-Archivo
RD 29 may. 2024