Investment, Uncertainty and Irreversibility: Evidence from Belgian Accounting Data

Irreversibility of R&D investment and the adverse effect of uncertainty: Evidence from the OECD countries

Using annual data for nine OECD countries covering the period 1981–1992, we find a much sharper adverse effect of uncertainty on R&D investments, which are likely to be highly irreversible, than on non-R&D (and aggregate) investments.  2001 Elsevier Science B.V. All rights reserved.

inflation uncertainty and private investment: evidence from iran

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Corporate Taxation and Investment Evidence from the Belgian ACE Reform

Irreversibility, Uncertainty and Investment in the Presence of Technological Progress

We apply a real options approach to develop a general characterization of the dynamics of the capital accumulation process in the presence of technological progress. In particular, we delineate circumstances under which the present technology represents a compound real option, which incorporates as valuable embedded options the opportunity of successive updating of the technology to superior fu...

Investment, Irreversibility, and Financial Imperfections¤

Research ...nds that ...rms’ investment decisions are distorted by irreversibility and ...nance constraints. Whereas the existing literature examines the e¤ects of these features separately, this paper studies their interaction. The impact of these constraints on a ...rm’s incentive to invest is characterised using option pricing techniques. Financial constraints reduce the initial capacity, ra...