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Employing a continuous-time real options modeling framework, this paper scrutinizes the incentives to invest in German offshore wind farms. The focus of the analysis is the mode of action of the German feed-in tariff system for offshore wind energy deployment. The numerical results reveal that...
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Following the real option literature, whether or not uncertainty shocks drive business cycles depends on the degree of adjustment frictions. The more plants freeze and remain inactive in response to increased uncertainty, the stronger the adverse effects on the economic activity. Using quarterly...
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I investigate how political uncertainty influences corporate investment decisions employing a unique panel dataset of German manufacturing firms. I use data on firms' self-reported investment realizations, plans and revisions. The firm-specific user cost of capital captures the current...
Persistent link: https://www.econbiz.de/10011539894
which are defined as the wedge between the costs of internal and external finance or as the risk of being rationed on the … face this external finance premium and potential borrowing limits, but also the risk of not being able to meet their … repayment obligations and thus the risk of bankruptcy. If the risk of bankruptcy enters the profit maximization of the firm, the …
Persistent link: https://www.econbiz.de/10010295432
; countercyclical risk ; aggregate shocks ; idiosyncratic shocks ; heterogeneous firms ; news shocks ; uncertainty shocks. …
Persistent link: https://www.econbiz.de/10003857672