that theory has to offer and then runs a series of simple tests aimed at evaluating the empirical significance of various … of the marginal product of capital, and we find no evidence for the presence of a CAPM-based effect of risk …

highly sensitive to uncertainty. We briefly summarize the theory, stressing its empirical implications. We then use cross …-section and time-series data for a set of developing and industrialized countries to explore the relevance of the theory for … - affects investment as the theory suggests, but the size of the effect is moderate, and is greatest for developing countries …

This paper extends the theory of investment under uncertainty to incorporate fixed costs of investment, a wedge between …, investment is positive and is an increasing function of q, as is standard in the theory branch of the adjustment cost literature …

especially sensitive to risk, whether with respect to future cash flows, interest rates, or the ultimate cost of the investment …