Forecasting traffic and toll revenues for new highway projects involves great uncertainty due to the inherent uncertainty in the models used to make forecasts. As private investment becomes more common in project financing, quantifying the levels of risk and uncertainty associated with such projects becomes critical. This paper represents a review of many key studies and reports dealing with un...

The Stability Pact for South Eastern Europe is a political declaration and framework agreement adopted in June 1999 to encourage and strengthen cooperation among the countries of South East Europe (SEE) and to facilitate, coordinate and streamline efforts to ensure stability and economic growth in the region. (see Compact ") is a key component of the Stability Pact under Working Table II on Eco...

Because of external financing costs, private business owners often need to self-finance new investment projects. These self-financing needs create an incentive for business owners to hold financial assets whose payoffs are positively correlated with self-financing needs. If this effect is aggregated, expected returns on financial assets should be negatively correlated with aggregate private inv...

We consider a long-term capacity investment problem in a competitive market under demand uncertainty. Two firms move sequentially in the competition and a firm’s capacity decision interacts with the other firm’s current and future capacity. Throughout the investment race, a firm can either choose to plan its investments proactively, taking into account possible responses from the other firm, or...

This paper examines irreversible investment in a project with uncertain returns, when there is an advantage to being the first to invest, and externalities to investing when others also do so. Pre-emption decreases and may even eliminate the option values created by irreversibility and uncertainty. Externalities introduce inefficiencies in investment decisions. Pre-emption and externalities com...

Despite the widespread attention for private financing of infrastructure projects, actual empirical work on public-private partnerships remains limited. Especially topics return equity and lenders’ cash flow control in relation to uncertainty are under-researched. The aim this paper is investigate discuss mechanisms applied by financiers projects protect their returns investment. Using semi-str...

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Abel and Eberly (1994, 1999) suggest that the relationship between uncertainty and investment is non-linear and can be represented by an inverted Ucurve: at low levels of uncertainty, investment and uncertainty show a positive relationship whereas at high levels of uncertainty the relationship is a negative one. We empirically test this hypothesis using panel data on 459 US manufacturing indust...

Housing affordability in Australia is declining, especially for low-income tenants in the private sector. A number of attempts have been made to attract more private investment into boosting the supply of affordable housing in Australia. However, these attempts have been one-off and small-scale, enjoying very limited success. Large professional and institutional investors continue to avoid the ...