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Much of this work uses Tobin's\n                    <jats:italic>q<\/jats:italic>\n                    as a proxy for investment opportunities, therefore hypothesizing that\n                    <jats:italic>q<\/jats:italic>\n                    is a good proxy. This paper treats measurement error in\n                    <jats:italic>q<\/jats:italic>\n                    . Using a measurement\u2010error consistent estimator on the sorts regressions in the literature, I find no evidence of inefficient allocation of investment. The results in the literature appear to be artifacts of measurement error and of the correlation between investment opportunities and liquidity.\n                  <\/jats:p>","DOI":"10.1111\/0022-1082.00385","type":"journal-article","created":{"date-parts":[[2003,3,12]],"date-time":"2003-03-12T02:35:08Z","timestamp":1047436508000},"page":"1667-1691","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":340,"title":["Is It Inefficient Investment that Causes the Diversification Discount?"],"prefix":"10.1111","volume":"56","author":[{"given":"Toni M.","family":"Whited","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"311","published-online":{"date-parts":[[2002,12,17]]},"reference":[{"key":"e_1_2_4_2_1","first-page":"1369","article-title":"A unified model of investment under uncertainty","volume":"84","author":"Abel Andrew B.","year":"1994","journal-title":"American Economic Review"},{"key":"e_1_2_4_3_1","volume-title":"Handbook of Econometrics","author":"Aigner Denis","year":"1984"},{"key":"e_1_2_4_4_1","doi-asserted-by":"publisher","DOI":"10.1016\/0304-405X(94)00798-6"},{"key":"e_1_2_4_5_1","unstructured":"Billett Matthew andDavidMauer 1999 The value of the internal capital market Workingpaper University of Iowa."},{"key":"e_1_2_4_6_1","doi-asserted-by":"crossref","unstructured":"Bodnar Gordon M. 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