not rely on the “smooth-pasting condition.” An application to MacDonald and Siegel’s canonical investment problem (1986 …) shows that the standard investment threshold over-estimates the optimal threshold when the lower barrier is absorbing and …

-related investment cost is uncertain. Holding the average one-period investment cost constant, policy uncertainty leads to a higher … capital price and subsequently to lower levels of long-run aggregate investment and output. Policy uncertainty also makes … the simulated investment sequences from the model mimic the actual investment sequences. I find that policy uncertainty …

. Uniting Schumpeter's concern for innovation with Keynes' concern for uncertainty and expectations formation, this article … focuses on the behaviour of entrepreneurs confronting uncertainty caused by innovation. Entrepreneurs' behaviour is …

investment problems have been formulated. …

The effect that investment lags has on the uncertainty-investment relationship is studied by modifying the Bar-Ilan and … small, uncertainty affects investment negatively; (ii) A sufficiently large time lag engenders an inverse u …-shape relationship between the degree of uncertainty and the profit level that triggers investment; (iii) When such an inverse u- shape …

The role that Bernanke’s Bad News Principle plays in the modern theory of investment under uncertainty is analyzed. The … analysis shows that the actual investment dilemma is that by delaying investment firms trade off a higher present value of … earnings for a lower present value of the investment cost, in contrast to previous interpretations of this dilemma. The …

transition may be a new aspect of uncertainty. Problems, which can be solved, research fields, which can be augmented or created …

of the new integral is concavity, which might be interpreted as uncertainty aversion. The integral is then extended to …