prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost … significant impact. Finally, either regulatory instrument may induce the highest technology investment levels. …

emphasized the importance of uncertainty in determining the private rate of investment. As different theories give various … results with respect to their assumptions, a new theory of investment under uncertainty is explained in this study. Intuition … on the private investment rate. Among the macroeconomic factors, uncertainty relating to exchange rate distortion, terms …

investment. The model shows that increasing uncertainty will reduce the time horizon as well as investment. Moreover, the …-worst strategy in a discounted payback period framework is applied to examine the effect of uncertainty on the time horizon and …

This paper examines the effect of uncertainty on investment timing in a game theoretical real option model. We extend … is also influenced by the actions of a second player. The results show that a U-shaped investment-uncertainty … the settings of Gryglewicz et al. (2008), Wong (2007), and Sarkar (2000) by a more general assumption, i.e. the investment …

This paper examines the effect of uncertainty on investment timing in a game theoretic real option model. We extend the … settings of the related recent literature on investment timing under uncertainty by a more general assumption, i.e. the … investment is also influenced by the actions of a second player. The results show that a U-shaped investment–uncertainty …

-related investment cost is uncertain. Holding the average one-period investment cost constant, policy uncertainty leads to a higher … capital price and subsequently to lower levels of long-run aggregate investment and output. Policy uncertainty also makes … the simulated investment sequences from the model mimic the actual investment sequences. I find that policy uncertainty …

building up abatement capital stock, we examine the effect of a higher pollution tax rate on abatement investment both under … encourages abatement investment only if it does not exceed a certain threshold rate - a "Laffer-curve" phenomenon. When the size … of the tax increase is uncertain, at the time of the tax increase the abatement investment path may shift upward or …

that the effect of magnitude uncertainty on the optimal investment path may be more pronounced than that of timing … building up abatement capital stock, we examine the effect of a higher pollution tax rate on abatement investment both under … encourages abatement investment if it does not exceed a certain threshold rate. However, akin to Diamond-Mirrless' tax anomaly …

The literature on the relationship between exchange rate and investment mainly focuses on the devaluation argument …, which provides evidence that a devaluation may positively affect investment spending. The goal of this paper is to extend … the analysis to how exchange rate variability can influence firm innovation process. Employing a large panel of Italian …