A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2005; you can also visit the original URL.
The file type is
We revisit the problem of using error-laden proxies for q in regressions of investment on cash flow and q. We give a menu of prior information sets that can identify the sign of the coefficient on cash flow. This information is weaker than that necessary to identify coefficient values. An element of each set is a prior lower bound on a correlation between the proxy and q. We obtain positive OLS estimates of the coefficient on cash flow. However, the partial correlation between observed and truedoi:10.2139/ssrn.354700 fatcat:k6looaqo3becdkvx3shejgpgfu