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

. Consistent with the predictions of the theory, there is considerable heterogeneity in the effect of uncertainty on investment: it …Theoretical models of investment under uncertainty predict that the sign and the strength of the investment … investment and the market power of the firm. This paper investigates the effects of uncertainty on the investment decisions of a …

This paper explores the role of replacement and innovation in shaping investment and productivity during episodes of … information on equipment investment and firm's strategies. Investment concentrates on episodes of high investment, or investment … neither process innovation nor plant expansion. Then, we explore how large investment episodes transmit into the evolution of …

well as on the theory of submodular games, we are able to show that a subgame perfect equilibrium always exists and to …

choice problem concerns the investment of an amount of money in a safe option and a risky option when there is a 'global risk … risk can reduce the amount invested in the risky option. This result cannot be explained by classical Expected Utility or … by its main contenders Rank-Dependent Utility and Cumulative Prospect Theory. An explanation is offered by taking account …

Central and Eastern Europe. The theoretical section establishes a link between a risk-averse investor’s amount of information … faces less risk; therefore, the investor’s risk premium falls and the investor’s bid rises. This link generates four …

We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … dynamic, heterogeneous firms model we show that: (i) investment and entry into export markets is reduced when trade policy is … theory-based measure of policy uncertainty. Our novel approach using observable trade policies allows us to estimate the …

correlated with the cross-sectional dispersion of investment innovations; 6) measures of firm-idiosyncratic risk have sizeable …Firms expect certain investment expenditures. Firms realize certain investment expenditures. The difference is an … investment surprise. With the help of the IFO Investment Survey for the German manufacturing sector we measure firms …

the US. Their work suggests private sector expenditure (investment) on intangibles is about 13% (11%) of US GDP 1998 …-2000, with intangible investment about equal to tangible capital investment. Our work, using a similar method, suggests the UK … private sector spent, in 2004, about £127bn on intangibles, which is about 11% of UK GDP. The implied investment figure is …

’ because the tax liability is offset by a reduction in the post-tax risk of the investment. The Paper argues that this claim is … investment incentives in the presence of risk. Instead it proposes an alternative measure, based on the market value of the pre …This Paper re-examines the impact of capital income taxes on the incentive to invest in the presence of risk …