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Foreign Direct Investment and Exports Dynamics with Demand Learning

Kotseva, Rossitsa; Vettas, Nikolaos - C.E.P.R. Discussion Papers - 2005

demand uncertainty. We allow for demand shocks that, while increasing expected profit, impede learning. The firm learns …, examine how they depend on the technology parameters and the structure of uncertainty and show that learning alone may explain … the S-shape of these paths. Immediate investment is possible despite the presence of demand uncertainty, if there are …

Persistent link: https://www.econbiz.de/10005661630

Learning in Financial Markets

Pástor, Luboš; Veronesi, Pietro - C.E.P.R. Discussion Papers - 2009

We survey the recent literature on learning in financial markets. Our main theme is that many financial market phenomena that appear puzzling at first sight are easier to understand once we recognize that parameters in financial models are uncertain and subject to learning. We discuss phenomena...

Persistent link: https://www.econbiz.de/10005661697

Multinational Investment, Industry Risk and Policy Competition

Haaland, Jan I.; Wooton, Ian - C.E.P.R. Discussion Papers - 2002

In an uncertain business climate, multinational enterprises must take account of future exit costs in deciding where to locate a branch plant. We study how differences in national labour-market conditions between countries influence this decision. Other things equal, the most attractive location...

Persistent link: https://www.econbiz.de/10005661807