Consider the Hotelling linear spatial duopoly with firm uncertainty over the consumer mean. As uncertainty about the mean grows relative to the dispersion of consumers, competitive locations become socially optimal. A limit result for discontinuous, log-concave densities is also established.

This paper provides evidence of a negative association between macroeconomic uncertainty and the cross sectional dispersion of investment rate for a panel of Japanese manufacturing firms. We show that an increase in uncertainty leads to the narrowing of the cross section dispersion of investment...

We build on Mason and Weeds’ (2010) model of duopoly investment under uncertainty by allowing high initial values of the profit shock as in Huisman and Kort (1999). Persistent first-mover advantage increases the likelihood of immediate simultaneous investment. In contrast with previous models...

We present a model adequate for investment decisions in duopolies under total hidden competition. In this competitive context all potential entrants remain unrevealed until they decide to move into the market. The value-functions and the optimal entry thresholds are derived.

Constant unit manufacturing costs are lower (higher) in high wage North when inputs are (i) tradeable, (ii) country-specific and (iii) the elasticity of substitution between them is below (above) one. A two-country model of firm entry/location is considered.

We examine the causal effect of neighborhood segregation on black entrepreneurship. We address neighborhood sorting by analyzing city averages and omitted variable bias by instrumenting for segregation using historical railroad configurations. We find that segregation has a significant positive...

We empirically examine some listed Chinese firms’ political connection, ownership, and financing constraints. Politically-connected firms display no financing constraints whereas firms without connection experience significant constraints. Non-connected family-controlled firms bear greater...

In a broad panel over the period 1970–2000 we find that approximately 40% of the international variation in capital per worker is accounted for by the cross-country variance in the relative price of capital.

The collapse of Iceland’s financial system in October 2008 is used as a natural experiment to test whether advertising decisions have a forward-looking component. The results show that changes in the volume of advertisements precede changes in investment.

Through a finite-lived dynamic stochastic general equilibrium (DSGE) model comprising bubbly capital with fixed supply, one-period gestation lag, and a cash-in-advance constraint, we show that a money-accommodated but not price-accommodated technological shock can trigger excessive movement in...