impact of economic risk and risk preferences upon regional allocation of investments. The source of risk stems from the … difference in stochastic costs of location across regions. A comparative static analysis shows that capital allocation depends … upon the firms' risk preferences. As a result regional agglomeration of investments may occur although the objective of the …

I study irreversible investment decisions when projects take time to complete, and are subject to two types of …, and materials that will ultimately be required to complete the project, and that is only resolved as the investment … required, and which is external to the firm's investment activity. I derive a simple decision rule that maximizes the firm …

The impact of uncertainty on firms? investment outlays is subject to an ongoing debate.Der Einfluss von Unsicherheit …

The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several … channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and … investment likely. On the other hand, the ability of firms to adapt after uncertainty is resolved can make a risky strategy more …

The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several … channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and … investment likely. On the other hand, the ability of firms to adapt after uncertainty is resolved can make a risky strategy more …