Investment, Uncertainty, and Irreversibility in Ghana:
Panel data on Ghanaian manufacturing firms are used to test predictions from models of irreversible investment under uncertainty. Information on the entrepreneur's subjective probability distribution over future demand for the firm's products is used to construct the expected variance of d...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1997
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Schriftenreihe: | IMF Working Papers
Working Paper No. 97/169 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | Panel data on Ghanaian manufacturing firms are used to test predictions from models of irreversible investment under uncertainty. Information on the entrepreneur's subjective probability distribution over future demand for the firm's products is used to construct the expected variance of demand, which is used as a measure of uncertainty. Empirical results support the prediction that firms wait to invest until the marginal revenue product of capital reaches a firm-specific hurdle level. Moreover, higher uncertainty raises the hurdle level that triggers investment, and uncertainty has a negative effect on investment levels that is greater for firms with more irreversible investment |
Beschreibung: | 1 Online-Ressource (37 p) |
ISBN: | 1451858302 9781451858303 |
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spelling | Pattillo, Catherine A. Verfasser aut Investment, Uncertainty, and Irreversibility in Ghana Pattillo, Catherine A Washington, D.C International Monetary Fund 1997 1 Online-Ressource (37 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 97/169 Panel data on Ghanaian manufacturing firms are used to test predictions from models of irreversible investment under uncertainty. Information on the entrepreneur's subjective probability distribution over future demand for the firm's products is used to construct the expected variance of demand, which is used as a measure of uncertainty. Empirical results support the prediction that firms wait to invest until the marginal revenue product of capital reaches a firm-specific hurdle level. Moreover, higher uncertainty raises the hurdle level that triggers investment, and uncertainty has a negative effect on investment levels that is greater for firms with more irreversible investment Online-Ausg http://elibrary.imf.org/view/IMF001/03810-9781451858303/03810-9781451858303/03810-9781451858303.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Pattillo, Catherine A. Investment, Uncertainty, and Irreversibility in Ghana |
title | Investment, Uncertainty, and Irreversibility in Ghana |
title_auth | Investment, Uncertainty, and Irreversibility in Ghana |
title_exact_search | Investment, Uncertainty, and Irreversibility in Ghana |
title_exact_search_txtP | Investment, Uncertainty, and Irreversibility in Ghana |
title_full | Investment, Uncertainty, and Irreversibility in Ghana Pattillo, Catherine A |
title_fullStr | Investment, Uncertainty, and Irreversibility in Ghana Pattillo, Catherine A |
title_full_unstemmed | Investment, Uncertainty, and Irreversibility in Ghana Pattillo, Catherine A |
title_short | Investment, Uncertainty, and Irreversibility in Ghana |
title_sort | investment uncertainty and irreversibility in ghana |
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