Altug, Sumru; Demers, Fanny S.; Demers, Michel - In: Journal of Macroeconomics 31 (2009) 4, pp. 509-522
We examine the impact of random changes in investment tax credit (ITC) policy on the irreversible investment decisions of a monopolistically competitive firm facing demand uncertainty. We examine the impact of increases in risk and changes in persistence in the ITC policy on investment behavior....