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Uncertainty about the level of demand is thought to influence irreversible capacity decisions. This paper examines some implications of the theory literature on this topic in an empirical study of the US cement industry between 1994 and 2006. Firms in this sector have the ability to deliver...
Persistent link: https://www.econbiz.de/10013138028
firms' investment decisions. We characterize the conditions under which fire sales occur in equilibrium and their … consequences on firms' investment decisions. We also show that endogenous financial crises may arise in this environment, with …
Persistent link: https://www.econbiz.de/10013116475
multinational enterprise regarding the cross border distribution of its investment and the choice of its financing behavior. We …
Persistent link: https://www.econbiz.de/10013104836
In this paper we present the Ifo Investment Database, which provides annual investment data for 12 investment assets in … allows allocating investments by asset type to each industry, using an investment flow matrix. The database enables … researchers to analyze structural investment behavior on the industry level and to identify changes in the importance of in-vestment …
Persistent link: https://www.econbiz.de/10013084902
We investigate the effects of interregional labor market integration in a two-sector, overlapping-generations model with land-intensive production in the non-tradable goods sector (housing). To capture the response to migration on housing supply, capital formation is endogenous, assuming that...
Persistent link: https://www.econbiz.de/10013085282
-enhancing as it increases capital investment. This holds for any tax level and any recycling of the tax revenues except for …
Persistent link: https://www.econbiz.de/10013085294
.2% higher today if productivity-enhancing investment intensity had remained at its pre-crisis level …
Persistent link: https://www.econbiz.de/10012964611
There is a lack of clear evidence of the ways in which dividend taxation affects dividend distributions and investment …
Persistent link: https://www.econbiz.de/10013156879
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 …
Persistent link: https://www.econbiz.de/10013156881
The real option theory provides a useful tool to evaluate an R&D investment under uncertainty because, unlike the NPV … (Net Present Value), it considers the managerial flexibility that may be expand the investment opportunity value. However …, most R&D investment projects are open to competing firms in the same industry or line of business, and so the strategic …
Persistent link: https://www.econbiz.de/10013157504