Is the Firm-level Relationship Between Uncertainty and Irreversible Investment Non-linear?
Author : Yigal Menashe
Publisher :
Page : 40 pages
File Size : 27,59 MB
Release : 2005
Category :
ISBN :
Author : Yigal Menashe
Publisher :
Page : 40 pages
File Size : 27,59 MB
Release : 2005
Category :
ISBN :
Author : Yigal Menashe
Publisher :
Page : 40 pages
File Size : 44,5 MB
Release : 2008
Category : Business enterprises
ISBN :
Author : Yigal Menashe
Publisher :
Page : 40 pages
File Size : 31,86 MB
Release : 2005
Category : Capital investments
ISBN :
Author : Robert S. Pindyck
Publisher : World Bank Publications
Page : 58 pages
File Size : 43,23 MB
Release : 1989
Category : Capital investments
ISBN :
Irreversible investment is especially sensitive to such risk factors as volatile exchange rates and uncertainty about tariff structures and future cash flows. If the goal of macroeconomic policy is to stimulate investment, stability and credibility may be more important than tax incentives or interest rates.
Author : Timothy B. Folta
Publisher :
Page : 50 pages
File Size : 14,66 MB
Release : 2001
Category : Barriers to entry (Industrial organization)
ISBN :
Author : Hong Bo
Publisher :
Page : 0 pages
File Size : 49,74 MB
Release : 2005
Category :
ISBN :
We examine the investment-uncertainty relationship for a panel of Dutch non-financial firms. The system generalized method of moments (GMM) estimates suggest that the effect of uncertainty on investment is nonlinear: for low levels of uncertainty an increase in uncertainty has a positive effect on investment, while for high levels of uncertainty an increase in uncertainty lowers investment. This result is in line with a number of theoretical studies, but has never been documented empirically.
Author : Robert Lensink
Publisher : Edward Elgar Publishing
Page : 176 pages
File Size : 25,23 MB
Release : 2001-01-01
Category : Business & Economics
ISBN : 9781782541240
This book presents an up-to-date overview of the theory as well as the empirics of the relationship between investment, financial imperfections and uncertainty. After reviewing the capital market imperfections literature and the empirical results, the authors discuss both traditional investment models with uncertainty and the more modern option based models. They present an overview of empirical results of the modelling of investment under uncertainty. In these examples the effects of capital market imperfections on investment are carefully considered. The authors conclude that there is overwhelming empirical support for a negative uncertainty-investment relationship. This book should appeal to academics with an interest in investment theory, professionals in the financial sector and students of macroeconomics and finance. "Investment, Capital Market Imperfections, and Uncertainty" assumes only a basic knowledge of mathematics and is easily accessible.
Author : Robert K. Dixit
Publisher : Princeton University Press
Page : 484 pages
File Size : 11,72 MB
Release : 2012-07-14
Category : Business & Economics
ISBN : 1400830176
How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.
Author : Ciaran Driver
Publisher : Routledge
Page : 230 pages
File Size : 36,77 MB
Release : 2005-08-10
Category : Business & Economics
ISBN : 113464180X
This volume presents studies to explain international investment behaviour and assess its impact on growth and jobs. The authors also examine policy measures to reverse the climate of low investment that has characterised recent years
Author : John Vincent Leahy
Publisher :
Page : 29 pages
File Size : 32,20 MB
Release : 1995
Category : Capital investments
ISBN :