Licandro, OmarUniversidad Carlos III de Madrid. Departamento de Economía2008-08-132008-08-131991-022340-5031https://hdl.handle.net/10016/2794The 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 shortrun phenomenonapplication/pdfengAtribución-NoComercial-SinDerivadas 3.0 EspañaTobin's qInvestmentMonopolistic CompetitionQuantity Rationing Modelworking paperEconomíaopen access