This paper studies optimal investment in sunk assets for a firm facing uncertain future demand and costs. The … investment problem is decomposed into decisions over scale and timing which are influenced by convex adjustment costs and the … feasibility of delaying investment. The value of the resulting real option to delay behaves as expected in response to increases …

growth in developing countries. Using micro-level data from agricultural surveys during the period of insurgency in Punjab … (India), I find significant negative effects of terrorism on the level of investment in long-term agricultural technology but … effects are small and insignificant for short-term investment. The presence of a major terrorist incident in a district in a …

highlights the fact that investment in technical progress is an authentic type of competition which benefits the consumers rather … firms through investment, is high enough. Competition is, in fact, made up of two components: A static one which is known as …

the negative effect of the user cost of capital on firms' investment ratio. Changes in user cost are significantly … lagged cash stock to capital ratio influence the investment behaviour according to the broad credit channel theory. It is … shown that young firms, in particular, are more sensitive to user cost changes, sales growth and the lagged cash to capital …

This paper analyzes the behavior of a firm that chooses both the scale and timing of its investment. Sensitivity … is in contrast to the conventional wisdom, which is that greater volatility leads to investment in smaller increments … investment is a decreasing function of demand volatility. The timing and scale of investment are most sensitive to volatility …

This paper investigates the impact of technical progress on the relationship between competition an investment. The …. In a context of duopoly, technical progress raises investment of the industry and tends to reduce the degree of … substitutability that maximizes investment. Five examples illustrate this feature and highlight the fact that technical progress is not …

The determinants of investment behaviour are essentially preferences, endowments, production possibilities and … generally assumed, i.e. exponential and time-consistent preferences. In this paper I develop a simple model of land investment … security on investment incentives do not hold in this more general setting. In particular, I show that an inverse relation …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …” expected returns; the investment approach is no more and no less “causal” than the consumption approach in “explaining …

This paper studies the asset pricing implications of a general equi- librium model in which real investment is … firm increase the size of the firm and reduce the value of growth options. As a result, the firm is burdened with more …

This paper investigates erapirically the influence of uncertainty on corporate investment. Uncertainty of demand …, output prices and investment prices are measured by the standard deviation of (pre-)filtered Belgian (1984-1992) and Spanish … (1983-1993) panel data, and included as explanatory variables in the investment equations derived from a neo-classical model …