We analyze the investment decision of a population of time inconsistent entrepreneurs who overweight current payoffs … (or an excessive level of investment in the economy) without assuming the existence of boundedly rational, 'intrinsically …

We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … and entry decisions in the context of international trade. When market entry costs are sunk, policy uncertainty can create … a real option value of waiting to enter foreign markets until conditions improve or uncertainty is resolved. Using a …

This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock … the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of …

environmental regulations can spur more rapid innovation. I present a general framework for the analysis of these questions. I …

(and trade-off between) investment and wages in Slovenian firms. We find that investment behaviour is more consistent with … display a trade-off between investment and wages, and workers share in firms’ surplus and appropriate funds that are supposed … to be used for depreciation investment. Most findings are consistent with the principal theoretical models of …

capacity and lumpy investment/disinvestment. We use our model to answer two questions. First, what economic factors facilitate … investment sunkness, and high depreciation promote preemption races. We also show that low product differentiation and low … investment sunkness promote capacity coordination. Although depreciation removes capacity, it may impede capacity coordination …

investigate how uncertainty affects the attractiveness of investment in a particular location. Just how much does the ease of exit …-off rules deters potential investment while subsidies attract it. We examine the policy trade-off for a host government and …

the S-shape of these paths. Immediate investment is possible despite the presence of demand uncertainty, if there are … demand uncertainty. We allow for demand shocks that, while increasing expected profit, impede learning. The firm learns … gradually, in a Bayesian fashion, by observing past demand realizations. We derive the optimal exports and investment paths …