development and fluctuations. In many such applications, a key role is played by complementarities in the process of innovation. …

Ethical Observer (EO) who maximizes intertemporal welfare under this uncertainty, with expected-utility preferences. Various … utilitarian program diverges, then we prove it is optimal for the extended Rawlsian to ignore the uncertainty concerning the …

model predicts that an increase in uncertainty reduces the propensity of entrepreneurial firms to innovate, while it does … not affect the propensity of public firms to innovate. Furthermore, it predicts that the negative effect of uncertainty on … innovation is stronger for the less diversified entrepreneurial firms, and is stronger in the absence of financing frictions in …

This paper studies the macroeconomic implications of firms' investment composition choices in the presence of credit …-run dampening of the effects of the shock, at the expense of lower long-term investment and future output, relative to an economy … financing frictions generate large and long-lasting effects on output through their impact on the composition of investment. A …

This paper presents a new framework for studying irreversible (dis)investment when a market follows a random number of … optimal (dis)investment policies, absent in the real options literature. The paper also shows that, despite the stochastic …