Estimation of Tobin’s Q for the Peruvian economy

This paper estimates Tobin’s Q for the Peruvian economy for the period spanning from the first quarter of 1999 to the first quarter of 2009, using disaggregated data from the Economática database. A methodology for estimating Tobin’s Q is proposed that combines methods already established in the literature. The results show that the calculation of Tobin’s Q is robust across methodologies and that a one-percentage-point increase in the value of Tobin’s Q increases investment growth by approximately 0.08 percent. (Audio: Department of Economic Publications)