The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

so, we depart from the relevant literature, which focuses on fully equity-financed investment project. By letting a … representative firm borrow optimally, we show that debt finance not only encourages investment activities but can also substantially … mitigate the effect of tax rate uncertainty on investment timing …

In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule …

The real option theory provides a useful tool to evaluate an R&D investment under uncertainty because, unlike the NPV … (Net Present Value), it considers the managerial flexibility that may be expand the investment opportunity value. However …, most R&D investment projects are open to competing firms in the same industry or line of business, and so the strategic …

, preceding analyses of the economic and particularly investment effects are necessary. As investments drive job creation, tax …-induced changes in investment timing may significantly affect the income and wealth distribution. We analyze the impact of wealth … taxes on investment timing under uncertainty and irreversibility and the propensity to carry out risky projects. Using a …

business investment. To promote economic convergence of Eastern and Western Germany after reunification, bonus depreciation tax … incentives were granted for investments in Eastern Germany before 1999. Using business establishments in Western Germany as … control group, we address the question if and to what extent these investment tax incentives boosted investment. In line with …

The ifo Investment Survey asks firms in the German manufacturing sector about the importance of sales, technological … factors, finance, return expectations, and macroeconomic policy for their investment activity in a given year. We show that … these subjective investment determinants 1) capture economically what their labels suggest, and 2) have strong explanatory …

model features irreversible investment, no capital markets and fixed and sunk costs to export. Several features of the … distribution of investment rates and export participation patterns observed in firm-level data are closely matched in a calibration … exercise. Counterfactual experiments show that large adjustments in total sales associated with entry into foreign markets …