This paper analyses the impact of exchange rate unertainty upon the pattern of investment in different exchange rate … rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending. On the …

not rely on the “smooth-pasting condition.” An application to MacDonald and Siegel’s canonical investment problem (1986 …) shows that the standard investment threshold over-estimates the optimal threshold when the lower barrier is absorbing and …

-term revisions to expectations, and the influence of uncertainty on adjustment. We find that increased uncertainty slows the … irreversibility models. …

This paper investigates Romer's (1990) hypothesis linking uncertainty caused by the October 1929 crash with durable … computes the variance of stock returns. These goods are subject to different degrees of irreversibility. The response to a mean … preserving spread implies a relative increase in investment in the less irreversible good -- in this case consumer durables …

emphasized the importance of uncertainty in determining the private rate of investment. As different theories give various … results with respect to their assumptions, a new theory of investment under uncertainty is explained in this study. Intuition … on the private investment rate. Among the macroeconomic factors, uncertainty relating to exchange rate distortion, terms …

investment. The model shows that increasing uncertainty will reduce the time horizon as well as investment. Moreover, the …-worst strategy in a discounted payback period framework is applied to examine the effect of uncertainty on the time horizon and …

in our one-period framework. We show how the introduction of global uncertainty reduces the investment of the risk …In this article we study the effect of uncertainty on an entrepreneur who must choose the capacity of his business … optimal capacity. Our results are compared with those in the two literatures on price uncertainty and demand uncertainty, and …

The purpose of the study is to clarify a few possible causes for the delay in new investment projects. It is well known … that anticipation of future economic environment and prices affects the current investment decisions of a firm. Gaussian … construct models for the investment behavior of a firm that make it possible to consider non-gaussian processes as well as …

Focusing on a panel of unlisted firms from transition economies, we observe that only firms facing low irreversibility … exhibit high and significant investment-cash flow sensitivities. Our findings provide a new explanation for why some …

variable capital investment is reinforced by the irreversibility constraint. Finally, the interaction between the two … irreversibility constraints. The financing constraint implies that firms cannot borrow unless the debt is secured by collateral; the … irreversibility constraint that they can only sell their fixed capital by selling their business. We use this model to examine the …