The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …

planning. In a seminal paper [Leahy, J.V., 1993. Investment in Competitive Equilibrium: the Optimality of Myopic Behavior …. Quarterly Journal of Economics 108, 1105–1133] shows that the optimal investment strategy of a myopic planner who ignores market … general conditions. As a result, the calculation of optimal investment strategies is simplified considerably because …

activity on optimal consumption and investment. Here, learning introduces two sources of risk about future payoffs: structural …

This paper studies the herding behavior in managers' investment decision; Herding", specifically, is defined as … managers' chosen optimal investment level deviates from the first best and is drawn closer to an external reference point - for … example, the average investment level in an industry. The key mechanism in the model is that man-agers' latent skill variable …

A longstanding challenge in evaluating the impact of uncertainty on investment is obtaining measures of managers … the U.S. Census Bureau for approximately 25,000 manufacturing plants. We find three key results. First, investment is … associated with about a 6% reduction in investment. Second, uncertainty is also negatively related to employment growth and …

activity on optimal consumption and investment. Here, learning introduces two sources of risk about future payoffs: structural …

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 …

capacity of a firm. However, with a few exceptions, such lags are ignored in the modelling of irreversible investment under … uncertainty. In this paper I examine the impact such lags have on the optimal investment strategy of a firm in the context of …. Furthermore, when KU and lags are jointly incorporated into a problem of irreversible investment under uncertainty, volatility …