Talk:Tobin's q/Archives/2012

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.

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.

graph

this graph was in the article with no title or context. what is this the Tobin's q of? a company? an index of companies? something else? as is it is just an example of what a graph of a tobin's q might look like, which is not very useful. should be reinserted with some context --Jieagles (talk) 17:38, 30 January 2010 (UTC)

Yes, it needs more info. I had pulled it back from the history at the time without trying to find out more. This is what I found. It measures the ratio of the US stock market value to US net assets at replacement cost. The data from 1952 on comes from the "Flow of Funds Accounts of the United States Z1”, which is published quarterly by the Federal Reserve. Earlier data are available from a variety of sources from 1900 as compiled by Stephen Wright, University of London. —Preceding unsigned comment added by Nubeli (talk • contribs) 14:22, 8 March 2010 (UTC)