The aim of this paper is to analyse the implications of the theory of irreversible investment under uncertainty for investment in oil fields on the United Kingdom Continental Shelf (UKCS). We consider the problem of an operator who owns a licence to develop and extract oil from a field of known...

Using BEA input output data, we study the pattern of shock transmission across sectors, but separate the dynamics between positive and negative sectoral shocks. We find that the rate of decay for negative shocks, as they propagate from one sector to another, is lower than the decay rate for...