The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

not rely on the “smooth-pasting condition.” An application to MacDonald and Siegel’s canonical investment problem (1986 …) shows that the standard investment threshold over-estimates the optimal threshold when the lower barrier is absorbing and …

stochastic shocks imply that investment in radical innovation may very often be too time consuming and/or expensive to remain …We refine modelling of the radical innovation decision in this paper by extending real option theory to include non …

-dependent with many other complex phenomena, such as climate policies, energy investment, natural resources availability, social and …

From the model of Hobijn and Jovanovic (2001), we modelize a technological shock with uncertainty. We assume that this … technological shock appears in the shape of new firms. Only a part of these firms will be productive. Uncertainty relates to the … identification of the viable firms. This uncertainty decreases with the time and the diffusion of fundamentalist information that …

We study the effect of dynamic and investment externalities in a one-sector growth model. In our model, two agents … interact strategically in the utilization of capital for consumption, savings, and investment in technical progress. We … consider two types of investment choices: complements and substitutes. For each case, we derive the equilibrium and provide the …

We study the effect of dynamic and investment externalities in a one-sector growth model. In our model, two agents … interact strategically in the utilization of capital for consumption, savings, and investment in technical progress. We … consider two types of investment choices: complements and substitutes. For each case, we derive the equilibrium and provide the …

an alternative way to model whether firms export or not, namely as a firm-level decision akin to an investment decision …

In this paper we analyse the impact of policy uncertainty on foreign direct investment strategies. The paper follows … payoffs are stochastic due to political uncertainty and investments are partially reversible. Across the board we find that … political uncertainty can be very detrimental to FDI decisions. …

the capital stock. The second condition implies a complex decision called the investment process or the programming of the … investment or the financing of the capital. Any of these terms refer to the process of the expenses programming whose effects are …