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Technological uncertainty and cost-effectiveness of CO2 emission trading schemes

Löschel, Andreas (contributor); … - 2008

This paper studies implications of uncertainty about the arrival date of a competitive CO2 backstop technology for the design of cost-effective CO2 emission trading schemes. For this purpose, we develop a dynamic general equilibrium model that captures empirical links between CO2 emissions...

Persistent link: https://www.econbiz.de/10003728655

How does owners' exposure to idiosyncratic risk influence the capital structure of private companies?

Müller, Elisabeth (contributor) - 2005

This paper identifies the entrepreneur’s exposure to idiosyncratic risk as an important determinant of the capital … structure of private companies. The exposure to idiosyncratic risk is approximated by the share of personal net worth invested … in one company (SNWI). Exposure to idiosyncratic risk increases cost of equity capital since higher equity returns are …

Persistent link: https://www.econbiz.de/10002681813

Patent protection, market uncertainty, and R&D investment

Czarnitzki, Dirk (contributor); Toole, Andrew A. (contributor) - 2006

The real options investment theory shows that greater uncertainty about market revenues reduces current R&D investment by increasing the value of waiting. This paper presents empirical evidence that patent protection mitigates the effect market uncertainty on R&D investment.

Persistent link: https://www.econbiz.de/10003359656

R&D collaboration with uncertain intellectual property rights

Czarnitzki, Dirk; Hussinger, Katrin; Schneider, Cédric - 2011

Patent pendencies create uncertainty in research and development (R&D) collaboration agreements, resulting in a threat of expropriation of unprotected knowledge by potential partners, reduced bargaining power and enhanced search costs. In this paper, we show that - depending of the type of...

Persistent link: https://www.econbiz.de/10008901848

Patent protection, market uncertainty, and R&D investment

Czarnitzki, Dirk (contributor); Toole, Andrew A. (contributor) - 2008 - Rev. version

Real options investment theory predicts current investment falls as uncertainty about market returns increases. In the case of R&D investment, which is usually considered an irreversible form of investment, this effect should be quite pronounced. This paper tests the real options prediction...

Persistent link: https://www.econbiz.de/10003671163

Expected Utility theory and the tyranny of catastrophic risks

Buchholz, Wolfgang; Schymura, Michael - 2010

risk aversion is assumed, a "tyranny of catastrophic risk" (TCR) emerges, i.e. project evaluation may be dominated by the … catastrophic event even if its probability is negligibly small. With low degrees of risk aversion, however the catastrophic risk …

Persistent link: https://www.econbiz.de/10008652528

Idiosyncratic risk and the cost of capital : the case of electricity networks

Schober, Dominik; Schäffler, Stephan; Weber, Christoph - 2014

We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities … regularly ignore firm-specific characteristics, such as size or asset ages, implying different risk exposure in incentive … all firms. This will lead to implicit discrimination. We combine models of firm-specific risk, liquidity management and …

Persistent link: https://www.econbiz.de/10010234037

Prospect theory, mitigation and adaptation to climate change

Osberghaus, Daniel - 2013

Climate change is one of the most pressing challenges in current environmental policy. Appropriate policies intended to stimulate efficient adaptation and mitigation should not exclusively rely on the assumption of the homo oeconomicus, but take advantage of well-researched alternative...

Persistent link: https://www.econbiz.de/10010203467

Uncertainty of outcome versus reputation : empirical evidence for the first German football division

Czarnitzki, Dirk; Stadtmann, Georg - 1999

This paper analyses the determination of match attendance in the German premier football league by applying models derived from Peel/Thomas (1992) and Janssens/Késenne (1987). Additionally we develop an improved version, where we incorporate the supporter clubs and the weather conditions as...

Persistent link: https://www.econbiz.de/10011443285

Investment opportunities in Central and Eastern European equity markets : an econometric examination of the risk-return relationships for Western investors

Schröder, Michael - 2000

This study focuses on the diversification benefits of the most developed equity markets of Central and Eastern Europe (CEE). To evaluate these benefits of diversification we use so-called spanning tests based on a stochastic discount factor approach and estimated by General Methods of Moments...

Persistent link: https://www.econbiz.de/10011444904