Showing 1 - 10 of 37
We give the reader a tour of good energy optimization models that explicitly deal with uncertainty. The uncertainty …
Persistent link: https://www.econbiz.de/10005125661
This paper analyzes the impact of different types of barriers on the decision to invest using a simple framework based on stochastic discount factors. Our intuitive approach proposes an alternative to the real options methodology that does not rely on the “smooth-pasting condition.” An...
Persistent link: https://www.econbiz.de/10005408247
This paper explores the sources of uncertainty that cause firms to revise their capital investment plans and the stock … market to revise its valuation of those firms. A simple method is developed to decompose the uncertainty governing revisions … idiosyncratic uncertainty, but common disturbances are more important for movements in the stock market rate of return. …
Persistent link: https://www.econbiz.de/10010884677
This paper investigates the relationship between infation uncertainty and investment using a panel of loan-level data … aggregates. The data show that periods of increased inflation uncertainty are associated with substantial reductions in total … models of investment under uncertainty. …
Persistent link: https://www.econbiz.de/10010884740
This paper shows that, with (partial) irreversibility, higher uncertainty reduces the impact effect of demand shocks on … investment. Uncertainty increases real option values making firms more cautious when investing or disinvesting. This is confirmed … both numerically for a model with a rich mix of adjustment costs, time-varying uncertainty, and aggregation over investment …
Persistent link: https://www.econbiz.de/10010928730
households reacted to the increase in uncertainty about the future path of income that such an event produced. Our estimates are …
Persistent link: https://www.econbiz.de/10010928811
Persistent link: https://www.econbiz.de/10011274872
issues of time and uncertainty in economics. The source of the difference between their economic ideas was the difference …
Persistent link: https://www.econbiz.de/10005076652
The consequences of many policies are complicated and difficult to foresee. Those who are capable of providing information to policy makers often have a vested interest in the outcomes. This gives them an incentive to distort information to manipulate policy decisions. In this article we argue...
Persistent link: https://www.econbiz.de/10005125873
construct a model in which individuals make labor/leisure choices over their lifetimes subject to uncertainty about their date … changes in the US life table over the last century, and show that this “uncertainty e ect” of declining mortality would have …
Persistent link: https://www.econbiz.de/10005126354