A note on competitive investment under uncertainty

Article Abstract:

A risk-neutral firm involved in investment could be affected in two ways by uncertainty over the future prices of output or costs of input. The firm could invest more as a result of a rise in the value of the marginal unit of capital, or it could invest less as a result of a rise in the cost of investment in a marginal unit of capital. A model shows that uncertainty throughout an industry could negatively impact investment that is irreversible, even under conditions of constant returns to scale and perfect competition.

Competition (Economics)

---

Exchange rates and the political economy of macroeconomic discipline

Article Abstract:

The selection of an exchange rate system by a government raises issues regarding a country's political economy. A model that factors in political instability, external shock variances, average real gross domestic product growth and the probability of abandoning a fixed rate regime is developed. The results show that unstable countries, countries with low international reserves and those with a history of high inflation rates are most likely to select a floating exchange rate regime.

Prices and rates, Foreign exchange, Foreign exchange rates, Foreign exchange market

---

The role of variable input in the relationship between investment and uncertainty

Article Abstract:

Labor's pivotal role in the balance between economic uncertainty and investment is examined.

United States, Econometrics & Model Building, Statistical Data Included, Influence, Econometrics, Labor economics, Business models

Similar abstracts:

• Abstracts: Non-commitment in performance evaluation and the problem of information distortions. Performance pay, delegation and multitasking under uncertainty and innovativeness: an empirical investigation
• Abstracts: Entrepreneurship and economic development: from classical political economy to economic sociology. Institutions, entrepreneurship, and the rationale of government: an outline of the Schumpeterian theory of the state
• Abstracts: Competition over more than one prize. Competition and the evolution of efficiency. Allocation efficiency in a competitive bribery game
• Abstracts: Changing comparative advantage and the changing composition of Asian exports. The United Sates' anti-dumping decisions against the Northeast Asian dynamic economies
• Abstracts: Interbank payments and the daily federal funds rate. A model of the bimetallic system. Does the fed act gradually? A VAR analysis

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.