Investments of uncertain cost
Investment in projects involves two distinct types of cost uncertainty, factor cost uncertainty, external to the company carrying out the investment, and technical uncertainty, linked to physical problems in completing projects. Uncertainty over factor costs is likely to have a bigger impact on the value of large projects, as can be illustrated using the example of a nuclear power plant. If technical uncertainty is similar in all stages of an investment project, this may have little effect on the cost to completion, though this finding does not hold if uncertainties are dealt with in the initial stages of a project.
Publication Name: Journal of Financial Economics
Tax-Induced Distortions and the Business-Pleasure Borderline: The Case of Travel and Entertainment
The effect of income taxation on business expenditures is examined with emphasis and expenditures for travel and entertainment from a sampling of proprietorships. Business expenditures show a significant price sensitivity. Further limitation of business expenditures would contribute to retrenched employment in the entertainment sector.
Publication Name: American Economic Review
Mexican agriculture: distribution and efficiency effects of eliminating price distortions
The impact of trade liberalization on Mexico's agriculture sector and income distribution would be significant. Equilibrium models have been developed to quantify this impact of free trade. Such models were introduced during talks between the North American countries that resulted in the North American Free Trade Agreement.
Publication Name: World Economy
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- Abstracts: Inflation, corruption, and income distribution: the recent price reform in China. Permanent income and long-run stability in a generalized multiplier/accelerator model
- Abstracts: Intertemporal preferences, imperfect competition and effective fiscal intervention. Effective protection in the presence of joint production
- Abstracts: Financial factors in the Great Depression. Was there an implicit full guarantee at financial institutions in Thailand? Evidence of risk pricing by depositors
- Abstracts: Applications of generalized method of moments estimation. Consistent estimation of a limiting covariance matrix