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 …

uncertainty. The model explicitly accounts for equipment availability and load duration curves in selecting optimal investment …

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. …

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 …

uncertainties when valuing different power generation technologies. We introduce a probabilistic valuation model of investment in …

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 …

This paper analyses the effect of uncertainty on investment spending. We analyse two types of investment, i ….e. aggregate investment and investment in energy saving technologies, using subjective evaluations of expectations and uncertainty … of general investment spending. Furthermore, expectations and uncertainty have important although different effects on …

-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 …