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Business Investment under Uncertainty and Irreversibility<sup>1</sup>

Doménico Lombardi

Oxonomics: Oxford university economic studies2009https://doi.org/10.1111/j.1752-5209.2009.00029.xarticle
ABDC B
Weight
0.43

What the paper says

Abstract: This article surveys developments in the literature on business investment that have shed light on important aspects of firms' investment behaviour. Recent contributions emphasize the relevance of idiosyncratic factors affecting investment decisions such as the degree of irreversibility and uncertainty, whose interaction may generate an opportunity cost equivalent to the exercise of an option. They add an important dimension to the neoclassical theory of investment in so far as they emphasize cross‐sectional differences in optimal investment behavior. The econometric evidence is consistent with the predictions of these models pointing to a slower response of investment to demand shocks at higher levels of uncertainty.

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https://doi.org/https://doi.org/10.1111/j.1752-5209.2009.00029.x

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@article{doménico2009,
  title        = {{Business Investment under Uncertainty and Irreversibility<sup>1</sup>}},
  author       = {Doménico Lombardi},
  journal      = {Oxonomics: Oxford university economic studies},
  year         = {2009},
  doi          = {https://doi.org/https://doi.org/10.1111/j.1752-5209.2009.00029.x},
}

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Business Investment under Uncertainty and Irreversibility<sup>1</sup>

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Evidence weight

0.43

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.22 × 0.4 = 0.09
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.