The initial theories of investment have emphasized the role of reduction of interest rate and increase in output for … encouraging private investment. But there are ample grounds for doubting these theories. As a result, researchers have recently … emphasized the importance of uncertainty in determining the private rate of investment. As different theories give various …

investment. The model shows that increasing uncertainty will reduce the time horizon as well as investment. Moreover, the …

Pennings (2000) has shown that the government can speed-up investment by subsidizing the potential investing firm …'s entry cost while taxing the future proceeds from the investment, so as to render the net expected value of its subsidy … program zero. This note argues that while speeding-up the investment timing, this subsidy-tax program also lowers the value of …

A typical model of investment under uncertainty where firms incur an irreversible cost in order to produce is studied …

. The coverage includes decision-making under uncertainty, measuring risk and risk aversion, insurance and asset markets …

directly to the consumer. Knowledge of diversity and specificity of their risk and individualization of possible areas requires …

negative part of the risk and hold cash to hedge against it. Second, cash balances are held to use chances that are created by … the positive part of the risk equation. Next, cash balances are the result of the operating needs of the firm. In this … article, we analyze the relation between these types of cash balances and risk. This article also contains propositions for …