To Buy or Not to Buy? Uncertainty, Irreversibility and Heterogeneous Investment Dynamics in Italian Company Data »
Series: IMF Working Papers
Author(s): Domenico Lombardi , and Stephen Bond
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2004
Keywords: Real Options, Panel Data, capital stock, survey, equations, measure of uncertainty, cost of capital, Intertemporal Firm Choice and Growth, Investment, or Financing
This study tests for the presence of real options effects induced by uncertainty and (partial) irreversibility on fixed capital investment using Italian company data. The approach recognizes that firm-level investm...