This paper uses firm level panel data from Ethiopian manufacturing to investigate the investment behavior of firms … under uncertainty. The paper focuses on the heterogeneity of firm level investment responses to both demand and supply side … sources of uncertainty. Accordingly, the investment-uncertainty relationship is examined across groups of firms with varying …

This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI … which, compared with the risk-adjusted cost of capital, correctly signals wealth creation. For choosing between two mutually … exclusive projects, we derive an incremental AROI and an incremental risk-adjusted cost of capital, by means of which two …

We study the effects of uncertainty on corporate leverage adjustments with respect to investment spikes and find that … overlevered and underlevered firms behave very differently in response to the combination of uncertainty and investment spikes …

presented provides an ability to evaluate sustainable withdrawal rates and exposure to sequence risk together …

This paper examines the effects of income shock on savings decision of a household. In particular, it analyzes how an … idiosyncratic income shock affects the asset portfolio held by a household. It shows that income volatility contributes to poverty … related income shocks are signifi cantly more likely to lead to this than weather related income shocks, thus suggesting that …

erroneously undervalue profitable investments, and ii) poverty increases the magnitude of these investment errors. The model …

Climate change increases weather variability, exacerbating agricultural risk in poor countries. Risk-averse farmers are … investment changes meaningfully alter ex post outcomes. In contrast, insurance, which provides no information, increases …