We give an explicit PDE characterization for the solution of a robust utility maximization problem in an incomplete market model, whose volatility, interest rate process, and long-term trend are driven by an external stochastic factor process. The robust utility functional is defined in terms of...

The literature suggests that public research and development (R&D) subsidies mayreduce market failures affecting private R&D investment caused by incompleteappropriability of knowledge and financial constraints due capital marketimperfections. Drawing on the theory of investment under...

Do the short and medium term adjustment costs associated with trade liberalization influenceschooling and child labor decisions? We examine this question in the context of India's 1991tariff reforms. Overall, in the 1990s, rural India experienced a dramatic increase in schoolingand decline in...

This study explores individual and country-level environmental drivers of informal “seed” investment. We examine four types of informal investors based on business ownership experience (or no such experience) and close family relationship with investee (or no such relationship): “classic love...

The paper analyses the impact of venture capital finance on growth and innovation activities of young German firms. Among other variables, our panel of firm data includes data on venture capital funding and patent applications. With statistical matching procedures we draw an adequate control...

The influence of capital gains taxes on investment decisions is a central issue of accounting and public finance research. However, the implications of capital gains taxes on investors' willingness to invest in irreversible projects with entry and exit flexibility have not yet been a focal...

In this paper, we apply the bounded rationality approach to aninvestment situation. In a simple setting where an investor decides betweena riskless bond and a risky asset, we distinguish three aspirationlevels: a lowest threshold that one wants to guarantee, an aspirationlevel given by investing...

Myopic loss aversion (MLA) has been established as one prominentexplanation for the equity premium puzzle. In this paper we address two issuesrelated to the effects of MLA on risky investment decisions. First, we assess therelative impact of feedback frequency and investment flexibility (via...

This report is a part of our study “The Emergence of Indian Multinationals: An Empirical Study of Motives, Status-quo and Trends of Indian Investments in Germany”. The study was conducted under the aegis of our “Research Project Global Innovation” at the Institute of Technology and...

Die FIFA Fußball-WM 2006 hat in Deutschland einen Boom bei Stadioninvestitionenausgelöst. Eine zweite Welle ist derzeit bei mittelgroßen Projekten zu beobachten, mit denenkleinere Bundesligisten und Zweitligisten den Anschluss an die Top-Klubs zu halten versuchen.[...]