traders to arbitrageurs? We study firm business investment to address this question. In our model, benevolent managers of … with positive net present value. Empirically, we find a positive relation between investment and a number of proxies for … mispricing, controlling for investment opportunities and financial slack, suggesting that overpriced (underpriced) firms tend to …

been significant changes in saving and investment patterns across the world and imbalances have narrowed considerably. Does …

investment models must be attributable to movements in equity risk premia. In this Paper we emphasise that such movements in … equity risk premia should have implications not merely for investment today, but also for future investment over long …-horizon fluctuations in the growth of marginal Q, and therefore investment. We test this implication directly by performing long …

Conventional wisdom has it that increasing price or exchange rate uncertainty will depress investment. Using the Dixit … uncertainty leads to more investment. It depends first on the risk of being stuck with (ex-post) unwanted investments, then on the … increase or decrease investment; and also to identify which types of industries would gain, and which would suffer, from a move …

investment goods in developing countries. One implication of our findings is that increased aid flows to developing countries …

Theoretical models of investment under uncertainty predict that the sign and the strength of the investment … investment and the market power of the firm. This paper investigates the effects of uncertainty on the investment decisions of a …. Consistent with the predictions of the theory, there is considerable heterogeneity in the effect of uncertainty on investment: it …

firm investment. This hypothesis is tested by estimating investment equations for two groups of German manufacturing firms … external financing costs and liquidity constraints. Findings support the hypothesis of greater investment sensitivity to … liquidity constraints, as well as increased investment sensitivity over time, for the group of independent firms. …