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An ongoing debate sets capital budgeting against market timing. The primary difficulty in evaluating these theories is finding distinct exogenous proxies for investment opportunities and mispricing. We use demand shifts induced by demographics to address this problem, and hence, provide a more...
Persistent link: https://www.econbiz.de/10012463465
We study a competitive credit market in which lenders with partial knowledge of loan repayment use one of three decision criteria - maximization of expected utility, maximin, or minimax regret - to make lending decisions. Lenders allocate endowments between loans and a safe asset, while...
Persistent link: https://www.econbiz.de/10012464269
-going investment costs until completion. Since time to completion is uncertain, the total investment costs will also be uncertain … strategies to continuous-time models in the form of abandonment intensities …
Persistent link: https://www.econbiz.de/10012465666
-related explanations. We do not rule out the possibility that creativity benefits from slack time. Instead, we introduce the idea that …The extant literature linking slack time to innovation focuses on how slack time facilitates creative activities such … as ideation, experimentation, and prototype development. We turn attention to how slack time may enable activities that …
Persistent link: https://www.econbiz.de/10012457532
Uncertainty about the timing of retirement is a major financial risk with implications for decision making and welfare over the life cycle. We estimate that the standard deviation of the difference between retirement expectations and actual retirement dates ranges from 4.28 to 6.92 years. We...
Persistent link: https://www.econbiz.de/10012456070
This paper examines the regulation of technological innovation direction under uncertainty about potential harms. We develop a model with two competing technological paths and analyze various regulatory interventions. Our findings show that market forces tend to inefficiently concentrate...
Persistent link: https://www.econbiz.de/10014635704
This paper considers the role of Rosenbergian uncertainty (i.e., economic uncertainties that arise after successful invention) in shaping appropriability for start-up innovators. Rather than assuming that the appropriability regime surrounding an innovation is exogenous, we focus on the...
Persistent link: https://www.econbiz.de/10012453266
to predict stock or bond market returns. Recent research argues that these results may be driven by an aggregate time …
Persistent link: https://www.econbiz.de/10012467866
be chosen later than earlier; (ii) decision time is higher when the likelihood of choosing each alternative is closer to … fifty percent; and (iii) the ultimate quality of the chosen alternative may increase or decrease with decision time … decision rises with decision time; (ii) average decision time is higher when our estimated probability of a positive decision …
Persistent link: https://www.econbiz.de/10014544793
women's creativity within the nonmarket household sector and outside the patent system. The analysis distinguishes between … improvements in consumer final goods, changes in designs, and other forms of technological creativity. The results indicate that …'s creativity in terms of a "gender difference" rather than a "gender gap" might yield useful analytical insights. A general …
Persistent link: https://www.econbiz.de/10012455595