We study a duopoly model of investment, in which each player learns about the quality of a common value project by observing some public background information, and possibly the experience of his rival. Investment costs are private information, and the background signal takes the form of a Poisson process conditional on the quality of the project being low. The resulting attrition game has a un...

This paper investigates the relationship between public investment in transportation and communication and economic growth using traditional instrumental estimation and a mixed fixed and random coefficient approach in the context of a dynamic panel framework. We find that there is a dynamic effect of public investment in transportation and communication on economic growth and its impact is posi...

ii Executive summary In order to achieve a transition to sustainable development, economies will need to be radically transformed. Businesses and households will be responsible for the bulk of the investment needed. Such a radical transformational change will require the blending of public and private, domestic and international, capital and technical assistance finance. Global capital markets ...

This chapter examines the relationship between growth and inflation in the long-run. Although positive in the short-run, cross-country studies indicate a negative relationship between the two in the longer run. There is now considerable evidence to show that investment is one of the most important determinants of the long-run rate of growth. Recent developments in the theory of investment behav...

In this note we theoretically investigate the question of whether the relationship between public debt and economic growth is characterized by an inverse U-shaped functional form. Starting point of our analysis is the paper by Checherita-Westphal et al. (2012) who present an endogenous growth model with public capital and public debt that displays a hump-shaped relation between debt and economi...

This paper investigates the preferences of a firm’s current and future shareholders for the quality of mandated public disclosures. In contrast to earlier studies, our analysis takes into account the effect of the quality of public information on the firm’s internal investment decisions. We show that while the firm’s investment is monotonically increasing in the quality of public information, t...