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Economic Policy Uncertainty, Trust and Inflation Expectations

Istrefi, Klodiana; Piloiu, Anamaria - CESifo - 2013

Theory and evidence suggest that in an environment of well-anchored expectations, temporary news or shocks to economic variables, should not affect agents’ expectations of inflation in the long term. Our estimated structural VARs show that both long- and short-term inflation expectations are...

Persistent link: https://www.econbiz.de/10010670794

Investment Policy for Time-Inconsistent Discounters

Harstad, Bård - CESifo - 2013

the current principal prefers her future self to save more, she can increase current investments complementary to future … savings and decrease investments in the strategic substitutes, for example. To characterize the principal’s choices they are … benefits from subsidizing investments in “green” capital (complementary to future savings) and tax investments in substitute …

Persistent link: https://www.econbiz.de/10010877709

Estimating Fluctuations in Oil and Gas Investment

Dahl, Roy Endré; Osmundsen, Petter - CESifo - 2014

Governments in extraction countries are anxious to estimate expected investment in development projects, since they represent an essential element of the macro economy. The overall level of activity is also crucial to oil companies, since the macro picture affects cost levels, the supplies...

Persistent link: https://www.econbiz.de/10010948869

Optimal Energy Investment and R&D Strategies to Stabilise Greenhouse Gas Atmospheric Concentrations

Bosetti, Valentina; Carraro, Carlo; Massetti, Emanuele; … - CESifo - 2007

The stabilisation of GHG atmospheric concentrations at levels expected to prevent dangerous climate change has become an important, global, long-term objective. It is therefore crucial to identify a cost-effective way to achieve this objective. In this paper we use WITCH, a hybrid...

Persistent link: https://www.econbiz.de/10005765756

Price-Dependent Profit Sharing as an Escape from the Bertrand Paradox

Foros, Oystein; Hagen, Kare P.; Kind, Hans Jarle - CESifo - 2007

firms undertake investments which benefit the industry in aggregate. The model is consistent with observations from the …

Persistent link: https://www.econbiz.de/10005094252

Exit Dynamics of Start-up Firms: Does Profit Matter?

Golombek, Rolf; Raknerud, Arvid - CESifo - 2015

We estimate by means of indirect inference a structural economic model where firms’ exit and investment decisions are the solution to a discrete-continuous dynamic programming problem. In the model the exit probability depends on the current capital stock and a measure of short-run...

Persistent link: https://www.econbiz.de/10011124892

Explosive Oil Prices

Gronwald, Marc - CESifo - 2013

This paper deals with three aspects of spectacular oil price episodes such as the one witnessed in 2008. First, the concept of temporary explosiveness is proposed as an empirical method for capturing this type of behavior. The application of a recently proposed recursive unit root test shows...

Persistent link: https://www.econbiz.de/10010877773

Investing in Biogas: Timing, Technological Choice and the Value of Flexibility from Inputs Mix

Corato, Luca Di; Moretto, Michele - CESifo - 2009

In a continuous-time framework we study the technology and investment choice problem of a continuous co-digestion biogas plant dealing with randomly fluctuating relative convenience of input factor costs. Input factors enter into the productive process together mixed according to a given initial...

Persistent link: https://www.econbiz.de/10005013066

Booms, Recessions and Financial Turmoil: A Fresh Look at Investment Decisions under Cyclical Uncertainty

Chen, Yu-Fu; Funke, Michael - CESifo - 2009

shows that macroeconomic risk acts as an important deterrent to investments. …

Persistent link: https://www.econbiz.de/10005013955

Dark Clouds or Silver Linings? Knightian Uncertainty and Climate Change

Chen, Yu-Fu; Funke, Michael; Glanemann, Nicole - CESifo - 2011

This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguity. Additionally, numerical simulations are provided to...

Persistent link: https://www.econbiz.de/10009221550