Licandro, OmarUniversidad Carlos III de Madrid. Departamento de Economía2008-07-222008-07-221991-022340-5031https://hdl.handle.net/10016/2769This paper combines the adjustment cost hypothesis of Tobin's q models with Malinvaud's proposition that demand uncertainty matters in explaining investment. Demand uncertainty allows for ex-post excess capacity and leads firms to look at the expeeted excess capacity in deciding about investment. Marginal q is shown to be smaller than average q, the difference being explained by the degree of capacity utilization (DUC).application/pdfengAtribución-NoComercial-SinDerivadas 3.0 EspañaTobin's qInvestmentMonopolistic CompetitionQuantity Rationing Modelworking paperEconomíaopen access