investment is larger than half of relative risk aversion. Another important consequence of parametric uncertainty is that the … risk premium is not proportional to the beta of the investment. We apply these general results to the case of an uncertain …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

tax audits, and simplified estimates of capital tax bases in investment models. Uncertain returns on investment as well as … stochastic taxation contribute to overall uncertainty and may significantly affect investment decisions. Hitherto, it is unknown … how capital tax uncertainty affects investment timing. However, it is well known that both uncertainty and capital tax may …