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 …

This paper analyses the impact of exchange rate unertainty upon the pattern of investment in different exchange rate … rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending. On the …

Recent theoretical developments relating to investment under uncertainty have highlighted the importance of … irreversibility for the timing of investment expenditures and their expected returns. This has subsequently stimulated a growing … empirical literature which examines uncertainty and threshold effects of investment behaviour. This paper presents a review of …

emphasized the importance of uncertainty in determining the private rate of investment. As different theories give various … results with respect to their assumptions, a new theory of investment under uncertainty is explained in this study. Intuition … on the private investment rate. Among the macroeconomic factors, uncertainty relating to exchange rate distortion, terms …

investment. The model shows that increasing uncertainty will reduce the time horizon as well as investment. Moreover, the …-worst strategy in a discounted payback period framework is applied to examine the effect of uncertainty on the time horizon and …

in our one-period framework. We show how the introduction of global uncertainty reduces the investment of the risk …In this article we study the effect of uncertainty on an entrepreneur who must choose the capacity of his business … neutral entrepreneur and, even more, that the risk averse one. We also show how marginal increases in risk reduce the optimal …

The literature on the relationship between exchange rate and investment mainly focuses on the devaluation argument …, which provides evidence that a devaluation may positively affect investment spending. The goal of this paper is to extend … firms and using a model of signal extraction we find that exchange rate volatility reduces investment, with a decreasing …

The analysis of inflation’s effect on investment can contribute to a deeper understanding of the benefits of a monetary … conclusions about the inflation-investment relationship that can be drawn from traditional monetary models with exogenous growth …-makers to fail to take proper account of inflation’s impact on investment. We then survey research which, contrary to monetary …

The purpose of the study is to clarify a few possible causes for the delay in new investment projects. It is well known … that anticipation of future economic environment and prices affects the current investment decisions of a firm. Gaussian … construct models for the investment behavior of a firm that make it possible to consider non-gaussian processes as well as …

describe how Americans in the labor force perceive the risk of near-term economic misfortune. …