Expropriation Risk, Investment Decisions and Economic Sectors

Expropriation risk, investment decisions and economic sectors ¬リニ

a r t i c l e i n f o We build a Real Options model to assess the importance of private provision and the impact of expropriation risk on investment timing, business values, governmental costs and social welfare. We consider two types of businesses (essential and non-essential) and two stages (operating businesses and investment opportunities) and answer questions regarding three main topics: t...

Experiments On Risk Perception And Investment Decisions Of Economic Actors

In a simple simulated experiment we compare the risk perception and risk taking of participants to the concept of coherent risk measures. Using a sample of 50 participants the aim of our preliminary research is to test the defined experimental environment and define the further directions of its development. Using simulated financial positive homogeneity, subadditivity and monotonicity are perc...

Foreign direct investment and the risk of expropriation

An Approach For Investment Allocation Among Alterative Economic Sectors

Expropriation of Foreign Direct Investment

Stylized evidence indicates that democracies and autocracies both expropriate foreign direct investment but that democracies do so less frequently. What explains the similarities and differences in expropriation between regime types? An analysis of actual expropriation acts in 63 developing countries from 1960 to 1990 shows that democracies are most likely to expropriate foreign investment when...