Individuals’ inability to coordinate investment may significantly constrain economic development. In this paper we … study a simple investment game characterized by multiple equilibria and ask whether an income-based incentive scheme can … uniquely implement the high investment outcome. A general property of this game is the presence of a crossover investment point …

holds for the microeconomic response of some of the most important economic variables, such as investment, labor demand, and … actual response to shocks is less than half as fast as the estimated response. For investment, labor demand and prices, the …, even after aggregating investment across all establishments in U.S. manufacturing, the estimate of its speed of adjustment …

realizations. We show that the forecasts significantly affect farmer investment decisions and that these responses account for a … the main instrument, that the return to agricultural investment depends substantially on the conditions under which it is …-invest, by a factor of three, when we compare actual levels of investments to the optimal investment level that maximizes …