households and lower investment by firms, and hence leads to lower aggregate investment and growth. This paper argues that … although risk can be measured, uncertainty cannot be measured. Even though risk can be measured, a simple symmetric measure … attempt at "measuring" risk or (fundamental) uncertainty is flawed. …

problem; how much information to acquire and what investment decision to make. As a consequence, the equilibrium contracts in …

independent of the risk characteristics of the investment options: the first and last investment options presented tend to receive …The aim of this study was to understand the potential effects of different information disclosures regarding risk on … retirement investing behavior. The authors developed and tested two modifications to the section on investment performance on the …

homogeneous goods market with non-lumpy investments. In our model, inefficient entry decisions are the result of risk-aversion of … incumbent producers and consumers, combined with incomplete financial markets which limit risk-sharing between market actors …. Investments in productive assets affect the distribution of equilibrium prices and quantities, and create risk spillovers. From a …

This paper examines irreversible investment decisions when the interest rate is stochastic and constrained by a zero … investment and uncertainty, it is shown that the presence of a lower bound on interest rates induces an asymmetric effect of … interest rate uncertainty on investment decision. When the interest rate is low an increase in interest rate volatility …

investment (more risk taking), labour (decrease of hours) and consumption level (shift to higher level), but no explicit effect …In this paper we extend the consumption-investment life cycle model for an uncertain-lived agent, proposed by Richard … agent facing age-dependent mortality risk, as presented by UK actuarial life tables spanning the time period from 1951 …

This study looks at firms' investment spending in fixed and intangible assets around three types of national elections … investments decrease by 4.36% in parliamentary election years. Moreover, investment responses to electoral shocks differ markedly … within political systems and countries' institutional settings. Investment levels shift significantly downward in pre- and …

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 …

The standard real-options model predicts that increased uncertainty discourages investment. When projects are large and … take time to build, however, this prediction can be reversed. We investigate the investment/uncertainty relationship …. We find that, in this market, greater uncertainty encourages investment and lowers the price thresholds for many mines …