Investment, capital stock, and replacement cost of assets when economic depreciation is non-geometric

• 成果类型: Article
• 署名作者: Livdan, Dmitry; Nezlobin, Alexander
• 署名单位: University of California System; University of California Berkeley; University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.05.021
• 发表日期: 2021
• 页码: 1444-1469
• 关键词: Tobin's Q; INVESTMENT; capital stock; Replacement cost; depreciation

摘要

This paper extends the Q-theory of investment to capital goods with arbitrary efficiency profiles. When efficiency is non-geometric, the firm's capital stock and the replacement cost of its assets are fundamentally different aggregates of the firm's investment history. If capital goods have constant efficiency over a finite useful life, simple proxies are readily available for both the replacement cost of assets in place and capital stock. Under this assumption, we decompose the total investment rate along two dimensions: into its net and replacement components, and into its cash and non-cash components. We show these components exhibit significantly different economic determinants and behavior. (c) 2021 Elsevier B.V. All rights reserved.