Multiple q and Investment in Japan, Volume 2

Extensions
1. Auflage 2020
ISBN: 978-981-1500-21-3
Verlag: Springer, Berlin

Buch, Englisch, 52 Seiten, Format (B × H): 155 mm x 235 mm

Reihe: Development Bank of Japan Research Series

This book, as the second volume of a two volume treatise, develops as in the first volume a consistent framework of the investment function that allows for the heterogeneity of capital goods, i.e., the Multiple q model, with theoretical extensions and empirical applications to investment behavior in Japan. Following primary and general analyses developed in the first volume, in this volume (Volume 2) on extensions, the authors extend the Multiple q model to inquire into and statistically test null hypotheses set on rather specific issues such as (a) differences in the adjustment costs by enterprise size and the degree of capital market imperfections, and (b) differences in the adjustment costs by the mode of acquisition such as new purchases, second-hand market acquisitions, and large-scale repairs. The results of the empirical test using Japanese corporate data show that, the investment behavior is heterogeneous not only in terms of the type of capital goods but also in terms of (a) enterprise size and the degree of capital market imperfections, and (b) the modes of acquisition.

Autoren/Hrsg.

Asako, Kazumi

Nakamura, Jun-ichi

Tonogi, Konomi

Fachgebiete

• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Makroökonomie
• Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Volkswirtschaften einzelner Länder und Regionen
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Unternehmensfinanzierung

Inhaltsverzeichnis

5 Extensions of the Multiple q Model: (I) Heterogeneity by Enterprise Size 5.1 Investment Behaviors by Capital Good and Enterprise Size 5.1.1 Analysis by Corporate Size Using Individual Survey Slip Data 5.1.2 Basic Framework of the Empirical Analysis 5.1.3 Control Variables and the Estimation Equation 5.2 Data Overview 5.2.1 Data Construction and Elimination of Outliers 5.2.2 Summary Statistics 5.3 Main Estimation Results and Interpretation 5.3.1 Baseline Model for All Sample Enterprises 5.3.2 Test of the Heterogeneity of Capital Goods 5.3.3 Comparison of Estimation Results by Equity Capital Size 5.3.4 Possibility of Lumpy Investment 5.4 Concluding Remarks References
6 Extensions of the Multiple q Model: (II) Heterogeneity by Mode of Acquisition 6.1 Introduction 6.2 Multiple q Investment Functions and Factor Analysis 6.2.1 Investment Behavior by Mode of Acquisition within a Multiple q Framework 6.2.2 Basic Factor Model 6.2.3 Factor Analysis 6.3 Construction of the Data 6.3.1 Total Investment and Total Capital Stock 6.3.2 New Construction, Second-hand Acquisitions, and Large-scale Repairs 6.3.3 Basic Statistics 6.4 Estimation Results 6.4.1 Estimation Results of the Multiple q Model 6.4.2 Estimation Results of Factor Analysis 6.4.3 Overall Interpretation of the Multiple q Model and Factor Analysis 6.5 Acquisition Modes of Investment and Corporate Growth 6.5.1 Relationship between the Acquisition Modes and Replacement Investment 6.5.2 Acquisition Mode of Capital Goods and Capital Investment Motives 6.5.3 Summary of Analysis Results 6.6 Concluding Remarks References
7 Heterogeneity of Capital: Concluding Remarks 7.1 The Multiple q Model: What Is Now Known 7.2 Non-linear Adjustment Costs and Lumpy Investment 7.3 Heterogeneity of Capital by Enterprise Size and by Mode of Acquisition 7.4 Epilogue References

Über Autor(innen)

Kazumi Asako is professor at the Faculty of Economics, Rissho University. His fields of interest in research are macroeconomics, empirical analysis of Japanese economy, and social common capital and environmental economics. He received a bachelor's degree in economics at the University of Tokyo in 1974 and a Ph.D. in economics at Yale University.
Jun-ichi Nakamura is general manager, Research Institute of Capital Formation, Development Bank of Japan. His fields of interest are corporate finance, financial system, corporate investment behavior, and Japanese economy. He received a bachelor's degree in economics at Keio University in 1989, and MA in economics at the University of Tokyo in 1995.

Konomi Tonogi is assistant professor at the Faculty of Economics, Rissho University. His research area is investment dynamics, intangible investment, firm value, and productivity analysis. He received BA in economics at Chuo University in 2002 and MA (2004) and Ph.D (2015) in economics at Hitotsubashi University.