In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …

This study introduces a real option model to investigate how fiscal policy affects a representative firm's investment … decision and to measure its welfare effects. On the one hand, the effects of financial instability on the optimal investment … investment project, the tax revenue generated and the welfare are influenced by financial instability. Then, a comparison of …

individuals may file for bankruptcy or default on their mortgage. Uncertainty in the model is driven by house price shocks …, education specific productivity shocks, and catastrophic consumption events, while bankruptcy is governed by the basic … Bankruptcy policy. …

's investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm's value due to profit sharing, linking this reduction to the …

investment decisions via both adjustment costs and marginal profitability of capital. We test these hypotheses by using a large … infrastructure ; Firm's value ; Corporate investment …