The empirical literature of investment under uncertainty has vastly neglected to account for the role played by market … structure. Recently the theory has however started to merge real options theory with game theory to offer alternative … explanations to strategic investment behaviour. This paper estimates an error correction model of investment under product price …

This paper uses a panel of UK manufacturing firms to examine whether the effect of cash flow on inventory investment … effect of cash flow on inventory investment is concentrated among firms identified as financially constrained using either … on the inventory investment of unconstrained firms. This raises doubts about whether these are accurate indicators of …

The macroeconomic implications of firms' lumpy investment behavior are subject to ongoing research. Lumpy investment … periods, thereby reducing the frequency of investment activities. Using a dynamic stochastic general equilibrium model with … compute firms' optimal decisions on investment, utilization and labor demand. Compared to the constant utilization model, the …

In this paper, we embed the microeconomic decisions associated with investment under uncertainty, capacity utilization … typically reduces investment at the micro level but increases aggregate investment. Finally, we study the relationship between …

In this paper, we embed the microeconomic decisions associated with investment under uncertainty, capacity utilization … about the productivity of an investment project typically reduces investment at the micro level, but it raises aggregate … investment. Increases in uncertainty also have important dynamic implications, causing sustained increases in investment and …

Critical review of investment-economic performance literatures in economics and strategic management indicates that … more capital investment does not seem to contribute to higher national economic growth or to higher corporate profitability …

How does aggregate profit uncertainty influence investment activity at the firm level? We propose a parsimonious … an investment forecasting model interacted with firm-specific coefficients. We find that higher profit uncertainty … large firms are expected to reduce investment much more than medium-sized firms. This highlights significant and substantial …

analysis further identifies sources of financing in these subsectors and discusses future investment and financing challenges …