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 … shows that macroeconomic risk acts as an important deterrent to investments. -- business cycles ; real options ; investment …

In this paper we offer an analysis of the effects of uncertainty about future tax policy on irreversible investment …. The main message of the paper is that investment is not much affected by the degreee of tax policy uncertainty. This is … that reducing tax policy uncertainty is probably no magic bullet to increase private investment spending …

similar investment subsidies were implemented in the same country, two years apart: once during a period of economic stability … offer an important policy opportunity to encourage investment. …

In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule …

intensive industries, such as cement, by increasing the relative cost of domestic production. -- capacity investment ; demand …

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 …

This article discusses the effects of an asymmetric tax scheme on incremental and sequential investment strategies. The …

shown that if taxation affects the optimal timing of irreversible investment, then the discrete choice is distorted as well …

We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax … exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment … investment threshold is a positive function of volatility, but independent of tax rate. For "medium" volatilities it is …