Investment in pollution prevention technologies are often made under significant uncertainty about the future pay … the timing of investments becomes an important issue for the company. This paper focuses on uncertainty about a future … environmental tax, and shows, within a two period model, that a specific tax uncertainty, standing alone, does not create any …

This paper statistically tests the option theory of irreversible investment under uncertainty. Using contingent claims …

A sudden change in investment environment shifts objective uncertainty (characterized by parameters that determine the … distribution of returns) and at the same time heightens subjective uncertainty (about the data generating parameters) unevenly … across investors. For a given state of economy, the uncertainty facing the investor is the sum of the uncertainty in the data …

uncertainty that has both economic and ecological roots. Public policies directed at invasive species typically lag their … detection. One possible explanation is the coupling of uncertainty with political and economic commitments creates an incentive … see approach often adopted by lawmakers and government agencies. The model shows that the source of uncertainty and degree …

This paper examines the role played by uncertainty and sunk costs on the timeseries fluctuations in industry structure ….S. manufacturing industries over a 30-year period, our estimates show that time periods of greater uncertainty, especially in … as a key driver of industry dynamics, our results indicate that uncertainty and sunk costs play a crucial role. Our …