The Firm’s Perception of Demand Shocks and the Expected Profitability of Capital under Uncertainty
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Abel, Andrew B & Eberly, Janice C, 1994.
"A Unified Model of Investment under Uncertainty,"
American Economic Review, American Economic Association, vol. 84(5), pages 1369-1384, December.
- Andrew B. Abel & Janice C. Eberly, "undated". "A Unified Model of Investment Under Uncertainty," Rodney L. White Center for Financial Research Working Papers 14-93, Wharton School Rodney L. White Center for Financial Research.
- Andrew B. Abel & Janice C. Eberly, 1993. "A Unified Model of Investment Under Uncertainty," NBER Working Papers 4296, National Bureau of Economic Research, Inc.
- Abel, Andrew B. & Eberly, Janice C., 1999.
"The effects of irreversibility and uncertainty on capital accumulation,"
Journal of Monetary Economics, Elsevier, vol. 44(3), pages 339-377, December.
- Andrew B. Abel & Janice B. Eberly, "undated". "The Effects of Irreversibility and Uncertainty on Capital Accumulation," Rodney L. White Center for Financial Research Working Papers 21-95, Wharton School Rodney L. White Center for Financial Research.
- Andrew B. Abel & Janice C. Eberly, 1995. "The Effects of Irreversibility and Uncertainty on Capital Accumulation," NBER Working Papers 5363, National Bureau of Economic Research, Inc.
- Smith, Kenneth R., 1969. "The effect of uncertainty on monopoly price, capital stock and utilization of capital," Journal of Economic Theory, Elsevier, vol. 1(1), pages 48-59, June.
- Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
- SMITH, Kenneth R., 1970. "Risk and the optimal utilization of capital," LIDAM Reprints CORE 52, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Abel, Andrew B, 1983. "Optimal Investment under Uncertainty," American Economic Review, American Economic Association, vol. 73(1), pages 228-233, March.
- Leland, Hayne E, 1972. "Theory of the Firm Facing Uncertain Demand," American Economic Review, American Economic Association, vol. 62(3), pages 278-291, June.
- Rothschild, Michael & Stiglitz, Joseph E., 1971. "Increasing risk II: Its economic consequences," Journal of Economic Theory, Elsevier, vol. 3(1), pages 66-84, March.
- Edwin S. Mills, 1959. "Uncertainty and Price Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 73(1), pages 116-130.
- Hartman, Richard, 1972. "The effects of price and cost uncertainty on investment," Journal of Economic Theory, Elsevier, vol. 5(2), pages 258-266, October.
- Kenneth R. Smith, 1970. "Risk and the Optimal Utilization of Capital," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 37(2), pages 253-259.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Hjalmar Böhm & Michael Funke & Nikolaus A. Siegfried, 1999.
"Discovering the Link between Uncertainty and Investment - Microeconometric Evidence from Germany,"
Quantitative Macroeconomics Working Papers
19906, Hamburg University, Department of Economics.
- Hjalmar Boehm & Michael Funke & Nikolaus A. Siegfried, 2000. "Discovering the Link Between Uncertainty and Investment - Microeconometric Evidence from Germany," Econometric Society World Congress 2000 Contributed Papers 0112, Econometric Society.
- Nick Bloom & Stephen Bond & John Van Reenen, 2007.
"Uncertainty and Investment Dynamics,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 391-415.
- Nick Bloom & John Van Reenen & Stephen Bond, 2006. "Uncertainty and Investment Dynamics," NBER Working Papers 12383, National Bureau of Economic Research, Inc.
- Nick Bloom & Stephen Bond & John Van Reenen, 2006. "Uncertainty and Investment Dynamics," CEP Discussion Papers dp0739, Centre for Economic Performance, LSE.
- Van Reenen, John & Bloom, Nick & Bond, Steve, 2006. "Uncertainty and investment dynamics," LSE Research Online Documents on Economics 2645, London School of Economics and Political Science, LSE Library.
- Yigal Menashe, 2005. "Is the Firm-Level Relationship between Uncertainty and Irreversible Investment Non- Linear?," Bank of Israel Working Papers 2005.12, Bank of Israel.
- Glover, Brent & Levine, Oliver, 2015. "Uncertainty, investment, and managerial incentives," Journal of Monetary Economics, Elsevier, vol. 69(C), pages 121-137.
- Hjalmar Boehm & Michael Funke, 2000. "Optimal Investment Strategies under Demand and Tax Policy Uncertainty," CESifo Working Paper Series 311, CESifo.
- Henriques, Irene & Sadorsky, Perry, 2011. "The effect of oil price volatility on strategic investment," Energy Economics, Elsevier, vol. 33(1), pages 79-87, January.
- De Sousa, José & Disdier, Anne-Célia & Gaigné, Carl, 2020.
"Export decision under risk,"
European Economic Review, Elsevier, vol. 121(C).
- Carl Gaigne & Anne-Celia Disdier & Jose de Sousa, 2015. "Export Decision under Risk," 2015 Meeting Papers 1272, Society for Economic Dynamics.
- José Claude de Sousa & Anne-Célia Disdier & Carl Gaigné, 2020. "Export decision under risk [Décision d’exportation en environnement risqué]," Post-Print hal-02624746, HAL.
- José de Sousa & Anne-Célia Disdier & Carl Gaigné, 2019. "Export Decision under Risk," Working Papers halshs-02332958, HAL.
- José Claude de Sousa & Anne-Célia Disdier & Carl Gaigné, 2020. "Export decision under risk [Décision d’exportation en environnement risqué]," PSE-Ecole d'économie de Paris (Postprint) hal-02624746, HAL.
- De Sousa, José & Disdier, Anne-Célia & Gaigné, Carl, 2017. "Export Decision under Risk," Working Papers 265728, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
- de Sousa, José & Disdier, Anne-Célia & Gaigné, Carl, 2015. "Export decision under risk," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205584, Agricultural and Applied Economics Association.
- José De Sousa & Anne-Célia Disdier & Carl Gaigné, 2016. "Export Decision under Risk," CESifo Working Paper Series 6134, CESifo.
- José De Sousa & Anne-Célia Disdier & Carl Gaigné, 2017. "Export Decision under Risk," Working Papers SMART 17-10, INRAE UMR SMART.
- José de Sousa & Anne-Célia Disdier & Carl Gaigné, 2019. "Export Decision under Risk," PSE Working Papers halshs-02332958, HAL.
- José De Sousa & Anne-Célia Disdier & Carl Gaigné, 2020. "Export decision under risk," Post-Print hal-04246995, HAL.
- Raouf Boucekkine & Bruno de Oliveira Cruz, 2015.
"Technological Progress and Investment: A Non-Technical Survey,"
Working Papers
halshs-01145485, HAL.
- Raouf Boucekkine & Bruno de Oliveira Cruz, 2015. "Technological Progress and Investment: A Non-Technical Survey," AMSE Working Papers 1519, Aix-Marseille School of Economics, France.
- Gianluca Femminis, 2019.
"Risk aversion heterogeneity and the investment–uncertainty relationship,"
Journal of Economics, Springer, vol. 127(3), pages 223-264, August.
- Gianluca Femminis, 2012. "Risk aversion heterogeneity and the investment-uncertainty relationship," DISCE - Quaderni dell'Istituto di Teoria Economica e Metodi Quantitativi itemq1260, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Tomat, Gian Maria, 2008. "Modeling the Effects of Financial Constraints on Firm's Investment," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-26.
- Sai Ding & Minjoo Kim & Xiao Zhang, 2021. "New Insight on Investment-Cash Flow Sensitivity," Working Papers 2021_16, Business School - Economics, University of Glasgow.
- Konstantinos Drakos, 2006. "A note on uncertainty and investment across the spectrum of irreversibility," Applied Economics Letters, Taylor & Francis Journals, vol. 13(13), pages 873-876.
- Bontempi, Maria Elena & Golinelli, Roberto & Parigi, Giuseppe, 2010.
"Why demand uncertainty curbs investment: Evidence from a panel of Italian manufacturing firms,"
Journal of Macroeconomics, Elsevier, vol. 32(1), pages 218-238, March.
- Elena Bontempi & Roberto Golinelli & Giuseppe Parigi, 2007. "Why demand uncertainty curbs investment: Evidence froma a panel of Italian manufacturing firms," Temi di discussione (Economic working papers) 621, Bank of Italy, Economic Research and International Relations Area.
- Horowitz, I. & Thompson, P., 1995. "The sophisticated decision maker: All work and no pay?," Omega, Elsevier, vol. 23(1), pages 1-11, February.
- Lin, Boqiang & Li, Minyang, 2022. "Understanding the investment of renewable energy firms in the face of economic policy uncertainty – Micro-evidence from listed companies in China," China Economic Review, Elsevier, vol. 75(C).
- Bo, Hong & Zhang, Zhihai, 2002. "The impact of uncertainty on firm investment: evidence from machinery industry in Liaoning province of China," Economic Systems, Elsevier, vol. 26(4), pages 335-352, December.
- Christopher F. Baum & Mustafa Caglayan & Oleksandr Talavera, 2010.
"On the sensitivity of firms' investment to cash flow and uncertainty,"
Oxford Economic Papers, Oxford University Press, vol. 62(2), pages 286-306, April.
- Christopher F. Baum & Mustafa Caglayan & Oleksandr Talavera, 2006. "On the Sensitivity of Firms' Investment to Cash Flow and Uncertainty," Boston College Working Papers in Economics 638, Boston College Department of Economics, revised 26 Apr 2008.
- Stephen R. Bond & Jason G. Cummins, 2004. "Uncertainty and investment: an empirical investigation using data on analysts' profits forecasts," Finance and Economics Discussion Series 2004-20, Board of Governors of the Federal Reserve System (U.S.).
- Bo, H. & Lensink, R., 2000. "Is the investment-uncertainty relationship non-linear? : an emperical [i.e. empirical] analysis for the Netherlands," Research Report 00E44, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Irawan, Denny & Okimoto, Tatsuyoshi, 2021.
"Overinvestment and macroeconomic uncertainty: Evidence from renewable and non-renewable resource firms,"
Journal of Economic Dynamics and Control, Elsevier, vol. 126(C).
- Denny IRAWAN & OKIMOTO Tatsuyoshi, 2020. "Overinvestment and Macroeconomic Uncertainty: Evidence from Renewable and Non-Renewable Resource Firms," Discussion papers 20059, Research Institute of Economy, Trade and Industry (RIETI).
More about this item
Keywords
Demand Uncertainty; Expected Profitability; Shock Perception; Jensen’s Inequality.;All these keywords.
JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:por:fepwps:195. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fepuppt.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.