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 provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … and entry decisions in the context of international trade. When market entry costs are sunk, policy uncertainty can create … a real option value of waiting to enter foreign markets until conditions improve or uncertainty is resolved. Using a …

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 …

environmental regulations can spur more rapid innovation. I present a general framework for the analysis of these questions. I …

(and trade-off between) investment and wages in Slovenian firms. We find that investment behaviour is more consistent with … display a trade-off between investment and wages, and workers share in firms’ surplus and appropriate funds that are supposed … to be used for depreciation investment. Most findings are consistent with the principal theoretical models of …

capacity and lumpy investment/disinvestment. We use our model to answer two questions. First, what economic factors facilitate … investment sunkness, and high depreciation promote preemption races. We also show that low product differentiation and low … investment sunkness promote capacity coordination. Although depreciation removes capacity, it may impede capacity coordination …

licensing production to a local firm. The preferred entry mode depends on uncertainty about future profits, tax differentials …

We study how the labour market and industry uncertainty affect the investment decisions of multinational enterprises …’s decision. When countries compete for foreign investment, different national characteristics determine the winners in different …

investigate how uncertainty affects the attractiveness of investment in a particular location. Just how much does the ease of exit …-off rules deters potential investment while subsidies attract it. We examine the policy trade-off for a host government and …