Capital investment decisions must recognize the limitations on the firm's ability later to sell off or expand capacity … to the q-theory of investment, and how these options affect the incentive to invest. Generally, the option to expand … effect of uncertainty on investment, how these option values change in response to shifts of the distribution of future …

This paper derives closed-form solutions for the investment and market value, under uncertainty, of competitive firms … irreversible investment as well as for reversible investment. Optimal investment is a non-decreasing function of q, the shadow … value of capital. The conditions of optimality imply that q cannot contain a bubble; thus, optimal investment depends only …

This paper presents an overview of current models of consumption and investment behavior. First, the stochastic … critical discussion of the Ricardia Equivalence Theorem. Investment behavior is analyzed using a dynamic optimization model of … theory. The model is then used to analyze the interaction of corporate taxes, inflation and investment and also to analyze …

volume of investment. Its application to the United States economy and the economies of other major OECD nations suggests …

This paper attempts to give a structural interpretation to the distributed lag of sales on investment at the two … implications. It then estimates the model, using both data on investment and sales as well as direct evidence on the sources of …

. Alternatively, if the cash-in-advance constraint applies to gross investment as well as consumption, then a permanent increase in …

Most of the empirical work on investment is based on the existence of a relation between investment and the expected … demand and technology and examine its relation to investment.We find that variations in this present value series are … value series, although significantly related to investment, still leaves unexplained a large, serially correlated fraction …

, does not allow separation of the savings decisions of agents from the investment decisions of firms. Investment is … essentially passive: the "one good" assumption leads to a perfectly elastic investment supply; the absence of installation costs … for investment leads to a perfectly elastic investment demand. On the other hand, the standard model of temporary …

on average q in a univariate regression of investment on average q. In a multiple regression of investment on average q … financial constraint, but it does not indicate a shortage of liquidity to fund current investment. In addition, the coefficient …