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Financing investment under fundamental uncertainty and instability: A heterodox microeconomic view

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  • Jo, Tae-Hee

Abstract

The business enterprise in the real world wrestles with fundamental uncertainty and instability. Key enterprise decisions such as pricing, financing, and investment are thus made strategically rather than optimally. Heterodox economists are, however, divided in the account of business enterprise's financing behavior; macroeconomists put an emphasis on external financing, whereas microeconomists on internal financing. Moreover, they often stop short of establishing a link between the two. Drawing upon the social provisioning perspective, this essay aims at providing a new light on financing focusing on strategic enterprise decision-making mechanisms.

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  • Jo, Tae-Hee, 2012. "Financing investment under fundamental uncertainty and instability: A heterodox microeconomic view," MPRA Paper 39450, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:39450
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    References listed on IDEAS

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    Cited by:

    1. Jo, Tae-Hee, 2016. "A Heterodox Theory of the Business Enterprise," MPRA Paper 72426, University Library of Munich, Germany.
    2. Tae-Hee Jo, 2016. "What If There Are No Conventional Price Mechanisms?," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(2), pages 327-344, April.
    3. Jo, Tae-Hee, 2013. "Uncertainty, Instability, and the Control of Markets," MPRA Paper 47936, University Library of Munich, Germany.
    4. Tae-Hee Jo, 2019. "The Institutionalist Theory of the Business Enterprise: Past, Present, and Future," Journal of Economic Issues, Taylor & Francis Journals, vol. 53(3), pages 597-611, July.

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    More about this item

    Keywords

    Business enterprise; pricing; financing; investment; uncertainty; instability; social provisioning process; social surplus; effective demand;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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