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Real Options With Uncertain Maturity and Competition
Miltersen, Kristian R. - 2007
We develop a new approach to dealing with real options problems with uncertain maturity. This type of situation is typical for R&D investments and mine or oil exploration projects. These types of projects are characterized by significant on-going investment costs until completion. Since time to...
Persistent link: https://www.econbiz.de/10012465666
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Corporate Decision-Making under Uncertainty : Review and Future Research Directions
Campello, Murillo; Kankanhalli, Gaurav - National Bureau of Economic Research - 2022
Uncertainty over future business conditions lies at the heart of firm decision-making. Uncertainty can arise from a myriad of sources and is difficult to measure. We present a simple conceptual framework showing how several key corporate decisions are affected by uncertainty. We also highlight...
Persistent link: https://www.econbiz.de/10013477225
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Model Uncertainty, Ambiguity Aversion, and Market Participation
Hirshleifer, David - 2017
optimal portfolio based on only one information source (price versus private signal). Asset risk premia satisfy the CAPM with … equilibrium model with a fund offering the risk-adjusted market portfolio (RAMP), ambiguity averse investors hold the fund and an …
Persistent link: https://www.econbiz.de/10012453570
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Competitive Lending with Partial Knowledge of Loan Repayment
Brock, William A. - 2008
We study a competitive credit market in which lenders with partial knowledge of loan repayment use one of three decision criteria - maximization of expected utility, maximin, or minimax regret - to make lending decisions. Lenders allocate endowments between loans and a safe asset, while...
Persistent link: https://www.econbiz.de/10012464269
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Modeling Managers As EPS Maximizers
Ben-David, Itzhak; Chinco, Alexander M. - National Bureau of Economic Research - 2023
Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them …
Persistent link: https://www.econbiz.de/10014250143
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Q-Monetary Transmission
Jeenas, Priit; Lagos, Ricardo - National Bureau of Economic Research - 2022
develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the …
Persistent link: https://www.econbiz.de/10013210051
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Individual Risk in an Investment-Based Social Security System
Feldstein, Martin - 2001
This paper examines the risk aspects of an investment-based defined contribution Social Security plan. We focus on the … risk after the plan is fully phased in. Individuals deposit a fraction of wages to a Personal Retirement Account (PRA … cushion' that protects the individual from the risk of an unacceptably low level of benefits. For example, PRA deposits of 6 …
Persistent link: https://www.econbiz.de/10012470655
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UNINSURED IDIOSYNCRATIC INVESTMENT RISK
Angeletos, George-Marios - 2005
This paper augments the neoclassical growth model to study the macroeconomic effects of idiosyncratic investment risk …
Persistent link: https://www.econbiz.de/10012467505
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Investment Under Uncertainty and Time-Inconsistent Preferences
Grenadier, Steven R. - 2006
The real options framework has been used extensively to analyze the timing of investment under uncertainty. While standard real options models assume that agents possess a constant rate of time preference, there is substantial evidence that agents are very impatient about choices in the...
Persistent link: https://www.econbiz.de/10012466627
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Policymakers' Uncertainty
Cieślak, Anna; Hansen, Stephen; McMahon, Michael; … - National Bureau of Economic Research - 2023
Uncertainty is a ubiquitous concern emphasized by policymakers. We study how uncertainty affects decision-making by the Federal Open Market Committee (FOMC). We distinguish between the notion of Fed-managed uncertainty vis-a-vis uncertainty that emanates from within the economy and which the Fed...
Persistent link: https://www.econbiz.de/10014436980