We study business uncertainty in high- versus low-volatility environments by surveying over 31,000 managers across 41 … countries. We elicit subjective probability distributions for future own-firm sales and measure firm-level uncertainty with … new facts. (1) Subjective uncertainty and realized volatility both decline with GDP per capita. (2) Managers underestimate …

Tax uncertainty is often claimed to be harmful for investments. Capital taxes, such as property and wealth taxes, are … particularly exposed to tax uncertainty. Capital tax uncertainty emerges from expected tax reforms, the unclear outcome of future … stochastic taxation contribute to overall uncertainty and may significantly affect investment decisions. Hitherto, it is unknown …

, no tax refunds are allowed. This scheme is neutral under both income and capital uncertainty. …

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 … ; Markov switching ; Tobin's q, uncertainty …

under uncertainty and irreversibility. Unlike other approaches we include accumulative schooling costs, and provide a full … discuss discontinuities and sheepskin effects within this approach. -- human capital theory ; uncertainty ; irreversibility …

In this paper we apply a real-option model to study the effects of tax rate uncertainty on a firm's decisions. In doing … mitigate the effect of tax rate uncertainty on investment timing. -- capital levy ; corporate taxation ; default risk ; real …

technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry … technical uncertainty stimulates starting R&D and can result in implementation of more expensive research projects. The welfare … analysis shows that the relation between welfare and entry cost and between welfare and uncertainty is nonmonotonic. …

Mental models help people navigate complex environments. This paper studies how people deal with model uncertainty. In … an experiment, participants estimate a company's value, facing uncertainty about which one of two models correctly …-complexity conditions people fully neglect model uncertainty in their actions. However, their beliefs continue to reflect model uncertainty …