to long-run uncertainty than investment, and in turn investment is relatively more sensitive to long-run uncertainty than … show that lower depreciation rates and higher adjustment costs lead R&D and investment to be more sensitive to longer … be particularly damaging to growth by reducing R&D and investment …

A recent literature suggests that because investment expenditures are irreversible and can be delayed, they may be … aggregate investment. We find that the volatility of the marginal profitability of capital - a summary measure of uncertainty … - affects investment as the theory suggests, but the size of the effect is moderate, and is greatest for developing countries …

The optimal timing of real investment is studied under the assumptions that investment is irreversible and that new … information about returns is arriving over time. Investment should be undertaken in this case only when the costs of deferring the … new information, retards the current rate of investment. The nature of investor's optimal reactions to events whose …

A resurgence in private investment is a necessary ingredient of a sustainable recovery in heavily-indebted developing … investment until much of the residual uncertainty regarding the eventual success of the reform is eliminated. This paper shows … that even moderate amounts of policy uncertainty can act as a hefty tax on investment, and that otherwise sensible reforms …

future oil price volatility derived from the NYMEX futures options market. Using a dynamic model of firms' investment problem …

What is the best way to incorporate a risk premium into the discount rate schedule for a real investment project with … uncertain payoffs? The standard CAPM formula suggests a beta-weighted average of the return on a safe investment and the mean … return on an economy-wide representative risky investment. Suppose, though, that the project constitutes a tail …

public sector, it may be economically rational for those at risk not to invest in protective measures. Risk management …. These may include multi-year insurance contracts, well-enforced regulations, third-party inspections, and alternative risk …

returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … the firm's exposure to IST shocks and risk premia. Our calibrated model replicates: i) the predictability of returns by …

investment; the impact of uncertainty on investment occurs primarily through changes in credit spreads; and innovations in credit … spreads have a strong effect on investment, irrespective of the level of uncertainty. These findings raise a question … financial shocks. By influencing the effective supply of credit, both types of shocks exert a powerful effect on investment and …

Romer's model of a dependent economy, where foreign direct investment is needed to enable the importation of capital goods …-averse entrepreneurs discount using a 'hurdle rate' that exceeds the risk-free interest rate. The gap between the two rates increases with … the uncertainty embodied in the investment, being determined by the vagueness of the information and by the range of …