highly sensitive to uncertainty. We briefly summarize the theory, stressing its empirical implications. We then use cross …-section and time-series data for a set of developing and industrialized countries to explore the relevance of the theory for … - affects investment as the theory suggests, but the size of the effect is moderate, and is greatest for developing countries …

itself. It then examines whether aggregate market risk or aggregate fundamental risk is priced. Although market risk is … priced, the paper does find that fundamental risk is an important factor in explaining risk premia …

especially sensitive to risk, whether with respect to future cash flows, interest rates, or the ultimate cost of the investment …

branch is the theory of irreversible investment under uncertainty, the second the theory of competitive speculation in stocks …. A model which combines these two elements is developed and applied to the aluminium market. The theory of irreversible …