Talk:Tobin's q

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I am surprised that this measure does not take account of liabilities on the "book side" of the ratio. mydogategodshat 15:28, 30 Sep 2004 (UTC)

[edit] Naming Convention

I have seen Tobin's Q often but i rarely see it written Tobin's-q. Usually i see it as Tobin's Q or just plain Q. Would anyone disagree if i changed the pselling of it to Tobin's Q, i think it is easier to read. also references to it later on could just say Q. BrokenSegue 12:09, 1 Oct 2004 (UTC) My source uses the "Tobin's-q" notation, but if there are other sources that support "Tobin's Q" and "Q", then the article should, I think, reflect all three.--Andrew Gardner 12:28, 1 Oct 2004 (UTC) Stiglitz usesTobin's q

[edit] Tobin's portfolio theory

Tobin argued that the effects of monetary policy resulted from monetary authorities changing the relative supplies, e.g. of money and bonds, or short-term and long term bonds as in Operation Twist. Page 21 "Towards a new paradigm in monetary economics"

Okay, it seems we don't have Operation Twist. Operation Twist involved US treasury retiring long term securities and issuing short term securities in order to improve the negative balance of payments while maintaining economic growth. This is based on the theory that it was the short term rate that was relevant for international capital flows, while long term rates were more relevant for domestic economy.

[edit] Balance sheet assets?

Is the asset value simply the balance sheet total? Or is it modified somehow?--Jerryseinfeld 19:42, 22 August 2005 (UTC)

The Balance sheet totals are Historic costs less the Accumulated Depreciation, which is also called the "Net Book Value". Replacement Costs as it states is the cost to replace the asset. So assuming a company purchases an assets some 10 years ago, the factors effecting it's replacement cost in those 10 years would be the level of Inflation in the country, obsolescence (don't forget technological developments)and above all it could be the availability of the same item being present in the market, at the same condition for purchase. Replacement costs are tricky.