's investment option and capacity decision in a dynamic and uncertain market environment, where continuous economic depreciation … investment is level-dependent on the rate of depreciation: only for sufficiently high rates of depreciation there is a positive … mitigated. The fact that the impact of economic depreciation on the firm's investment problem is level dependent demonstrates …

–2011 affect firms’ investment propensity. Understanding how forecast errors affect firm investment behaviour is key to mitigate … impact of absolute forecast errors on investment. Strikingly, asymmetries arise depending on the size and direction of the … forecast error. The investment propensity declines if the realised situation is worse than expected. However, firms do not …