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Investment fell sharply in the euro area after the financial crisis and has not yet returned to pre-crisis levels in … investment dynamics. By doing so, we compare five prominent uncertainty proxies put forward in the recent literature: the … type of uncertainty proxy, we document pronounced negative investment responses to uncertainty shocks. We further show that …
Persistent link: https://www.econbiz.de/10011571047
In this paper, we extend the usual models of irreversible investment under uncertainty by introducing the stock of … public capital as an input for the private sector. Public investment takes place in a stochastic environment. Public capital … equilibrium analysis, as it is standard in models of irreversible investment under uncertainty. Even under uncertainty, the …
Persistent link: https://www.econbiz.de/10012038764
In this paper the standard Euler equation investment model with imperfectly competitive product markets is extended for … imperfectly competitive structures on the factor markets: labour markets and markets for investment goods. This extension leads to …
Persistent link: https://www.econbiz.de/10013428118
model is used to assess this development. In particular, estimation results for investment and employment adjustment after … this paper to cover also unified Germany. The results reveal that the adjustment of investment and employment can be … analysed with the same theoretical model for West and East Germany. However, the adjustment speed for investment differs …
Persistent link: https://www.econbiz.de/10013428281
the low carbon-emitting sector, and (ii) reduce real investment and the capital stock in the highly carbon-emitting sector …, while real investment in the sector with low carbon emissions tends to fare better. To apply the theoretical predictions to … low carbon emissions, and (ii) substantial investment reallocation takes place, in particular from the manufacturing …
Persistent link: https://www.econbiz.de/10014330990
The corporate finance literature documents that managers tend to over-invest in their companies. A number of theoretical contributions have aimed at explaining this stylized fact, most of them focusing on a fundamental agency problem between shareholders and managers. The present paper shows...
Persistent link: https://www.econbiz.de/10011895831
This paper discusses theoretically the different incentives of managers versus firm owners to invest in innovative activities. There are opposing effects concerning R&D intensity in the manager-controlled firm. Our study on the determinants of R&D intensity presents empirical results concerning...
Persistent link: https://www.econbiz.de/10013428380
Japan's economy is expanding and expected to continue expanding moderately, according to Monthly Report of Recent Economic and Financial Developments released by the Bank of Japan in July 2007.The BOJ declared the change of policy stance at the Monetary Policy Meeting held on July 14, 2006. The...
Persistent link: https://www.econbiz.de/10012502971
This study investigates how crises affect firms’ adoption of frontier technologies using the Covid-19 pandemic as a case study. The analysis tracks the nature, timing, and pandemic-related motivations of investments among German firms, using longitudinal survey data linked with administrative...
Persistent link: https://www.econbiz.de/10015271307
-)variance of power plant profits. If investors are risk-averse, these differ- ences lead to divergent investment portfolios …
Persistent link: https://www.econbiz.de/10015271324