such applications, a key role is played by complementarities in the process of innovation. …

and uncertainty, investment in research and development (R&D), elasticities of substitution and complementarity between …We survey recent microeconometric research on investment and employment that has used panel data on individual firms or … theory of the demand for capital and labour, on which most of the econometric models of investment and employment that we …

We analyze the investment decision of a population of time inconsistent entrepreneurs who overweight current payoffs … (or an excessive level of investment in the economy) without assuming the existence of boundedly rational, 'intrinsically …

We investigate the empirical linkages between sales uncertainty and firms’ inventory investment behavior while … higher sales uncertainty leads to larger stocks of inventories. We also identify an indirect effect of sales uncertainty on … the adverse effects of uncertainty. …

to states of uncertainty be explicitly dealt with. We argue that ‘knowledge,’ because of the existence of uncertainty is …

same time it can modify the allocation of consumption, investment and the capital stock. With capital …, a shock to the process of capital-embodied technological progress is shown not to raise investment as much as could be … account of the improvement in the quality of capital goods rises only modestly. The muted investment response might seem very …

This paper analyzes the behavior of a firm that chooses both the scale and timing of its investment. Sensitivity … is in contrast to the conventional wisdom, which is that greater volatility leads to investment in smaller increments … investment is a decreasing function of demand volatility. The timing and scale of investment are most sensitive to volatility …

This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock … the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of …