Dynamic Corporate Finance is Useful: A Comment on Welch
21 Pages Posted: 30 Dec 2012 Last revised: 14 Apr 2014
Date Written: February 14, 2013
Welch (2013) critiques recent work in dynamic corporate finance. We offer the contrasting view that there is no logical reason to dismiss entire research methodologies, and that many methods can be useful. We explain why dynamic models and structural estimation are useful research tools, as well as why the criticisms of this research paradigm in Welch (2013) are incorrect.
Keywords: Dynamic Corporate Finance
JEL Classification: G30
Suggested Citation: Suggested Citation