This paper generalizes the theory of irreversible investment under uncertainty by allowing for risk averse investors in … aversion to examine the e ects of risk aversion, price uncertainty, and other parameters on the optimal investment decision ….We nd that risk aversion reduces investment, particularly if the investment size is large.Moreover, we nd that a rise in …

.Kulatilaka and Perotti [1998, Management Science] nd that, in a two-period model, increased product market uncertainty could … which adds flexibility in timing of the investment decision.This flexibility introduces an option value of waiting which … increases with uncertainty.In contrast with the two-period model, despite the existence of the strategic option of becoming a …

The real options tradition originally predicted a decreasing relationship between uncertainty and investment, through … the positive effect of higher uncertainty on the trigger level for revenue relative to costs. An opposing effect on the … probability is not the best measure of investment. The sign of the total effect is again ambiguous. This ambiguity is illustrated …

The real options tradition originally predicted a decreasing relationship between uncertainty and investment, through … the positive effect of higher uncertainty on the trigger level for revenue relative to costs. An opposing effect on the … probability is not the best measure of investment. The sign of the total effect is again ambiguous. This ambiguity is illustrated …

source of uncertainty (a policy uncertainty), thus multiplying the effects of the uncertainty of transition. This means that …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 …

significant amplifying role for market uncertainty in the relation between sentiment and aggregate investment. A one …-standard-deviation increase in uncertainty more than doubles the effect of sentiment on investment. Moreover, allowing uncertainty …The effects of sentiment should be strongest during times of heightened valuation uncertainty. As such, we document a …

of a central bank's interest rate policy, e.g. in times of low or even zero interest rates and high uncertainty, in terms …The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under …

of a central bank's interest rate policy, e.g. in times of low or even zero interest rates and high uncertainty, in terms …The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under …

of a central bank’s interest rate policy, e.g. in times of low or even zero interest rates and high uncertainty, in terms …The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under …