Uncertainty and stepwise investment

Dynamic Relationship between Inflation Uncertainty and Private Investment in Iran: An Application of VAR-GARCH-M Model

This paper empirically investigates the relationship between CPI inflation uncertainty, and private investment in the Iranian economy from 1988 to 2010 by using quarterly data. We employ a bivariate VAR(5)-GARCH(1,1)-in-mean with diagonal BEKK model to discover in a unified framework how are the interactions between the variables. In the model, conditional variance of inflation and private inve...

Stepwise Investment Value under Stage Specific Parameters

comments on related versions. Abstract We provide a general model for comparing stepwise and lumpy investments, considering stage specific volatilities, drifts and possibility of project failure. Stepwise investments allow for interim project value realizations, instead of considering only a final project value as in sequential investments. We conceive of an environment in which stepwise invest...

The study of the effective factors on investment in private sector in Iran “With emphasis on uncertainty”

Making capital and investment is the main driving forces of economic development. Based on the investment sensitivity to the changes of some of macro-economic variables and risk and uncertainty, the present study evaluated the effective factors on investment in private sector in Iran during 1980-2007. At first, the uncertainty variables of real informal exchange rate, nominal interest rate and ...

Investigation of exchange rate uncertainty and inflation on investment of construction companies in Iran

The construction industry in the housing sector plays an important role in economic growth due to its significant share in GDP compared to other sectors. One of the most important factors hindering the increase of private sector investment in the construction industry is the faltering of trust. Meanwhile, exchange rate uncertainty and inflation have the most negative impact on the investment of...

The Effect Of Salvage Market On Strategic Technology Choice And Capacity Investment Decision Of Firm Under Demand Uncertainty