In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule. …

The real options tradition originally predicted a decreasing relationship between uncertainty and investment, through … the positive effect of higher uncertainty on the trigger level for revenue relative to costs. An opposing effect on the … probability is not the best measure of investment. The sign of the total effect is again ambiguous. This ambiguity is illustrated …

'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 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 …

how capital tax uncertainty affects investment timing. However, it is well known that both uncertainty and capital tax may … stochastic taxation contribute to overall uncertainty and may significantly affect investment decisions. Hitherto, it is unknown … be harmful for investment and decelerate investment activities. We are the first to study the investment timing effects …

The purpose of this paper is to analyze the influence of uncertainty on the value of real options while allowing for a … uncertainty does not hold, if the value of the underlying asset changes due to a Variation of the Standard deviation. Only if the … uncertainty can be retained. In all other cases, the influence becomes ambiguous. In addition, we discuss the consequences of our …

not precise about its timing. A model of waiting and growth options seizes the importance of flexibility to FDI decisions … and centers the impact of uncertainty. The results of a panel study using aggregates of 5379 German entries to 22 … countries suggest that uncertainty has a U-shaped influence on the probability of entry and a negative effect on the amount of …

opportunities. If investors can react to uncertainty the degree of irreversibility and timing flexibility inherent in the available …In entrepreneurial decisions making uncertain future profits often are a main characteristics of real investment … profit taxation and real options. We model an investment decision including an option to invest and an option to abandon. We …

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 … of UK firms and a stock returns-based measure of uncertainty. As predicted we find that uncertainty reduces firms …