We derive robust predictions on the effects of uncertainty on short run investment dynamics in a broad class of models … of the capital stock is ambiguous. An investment model is estimated to test these theoretical predictions using a panel …

In this paper we analyse the impact of policy uncertainty on foreign direct investment strategies. The paper follows …

's investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm's value due to profit sharing, linking this reduction to the …

The traditional marshallian rule of investing when the value of the investment is greater than its installment cost is … from the optimal timing of exercise of the investment and to herd behavior or informational cascades given that the agents …

In this study, we experimentally analyze the investment behavior of smallholder farmers in Uganda. We consider a … options approach and the classical investment theory can predict farmers’ investment behaviors. We also examine differences in … the investment behavior with respect to the presence of a price floor, which is often used to stimulate investments …

We estimate the effect of demand and price uncertainty on firms’ investment decisions from a panel of manufacturing … investment, while price uncertainty is insignificant. This is consistent with the behavior of monopolistic firms with … irreversible capital (Caballero, 1991). Further, firms revise their investment plans very little. They may do so in response to new …

The paper considers the problem of evaluating the probability of investing in a capital-investment project as a measure … of the uncertainty-investment relationship in a real option model. By the use of the contingent claims analysis the …

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 …