Faculty News
Professor Thomas Philippon's joint research on capital investments is featured
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Excerpt from Seeking Alpha -- "German Gutierrez Gallardo and Thomas Philippon, in their paper "Investment-Less Growth: An Empirical Investigation" published this month by NBER do exactly that. The authors 'analyze private fixed investment in the U.S. over the past 30 years.' First, the authors establish that indeed, 'investment is weak relative to measures of [firm] profitability and valuation - particularly Tobin's Q, and that this weakness starts in the early 2000s.' In other words, whilst firms remain profitable, they simply do not reinvest their profits at the same rate today as in the 1990s."
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