The aim of this paper is to find the relationship among government and private capital formation in Pakistan during period 1981 2018. This study employs Auto Regressive Distributive Lag (ARDL) bound test. results show that infrastructure investment negatively effects on long run short run, indicating crowds out investment. In determining role liberalization policies, have important policy impli...

The real options approach to corporate investment decision making recognizes a firm can delay an investment decision and wait for more information concerning project cash-flows. The well known models of McDonald and Siegel (1986) and Dixit and Pindyck (1994) value the investment decision as a perpetual American call option on the project value. The former specifies the equilibrium return via CA...

ecause a large number of tourists come to  Mashhad, this city has a high potential for the development of tourism-related activities. Therefore, it is necessary to equip resources for tourism activities and investment in this regard. Despite the highest tourism potential in Mashhad, there are great opportunities for the tourism industry, which has not been fully identified and has not been made...

TAbstract T—This paper develops a tractable real options framework to analyze the effects of asymmetric information on firms' investment decisions when firms issue equity to finance investment. We assume that firm insiders exactly know the firms' growth prospects, but outside investors do not know. Our analysis shows that, under equity financing, the corporate insiders can signal their private ...

Although significant private investment is absorbed in different sectors of power systems, transmission sector is still suffering from appropriate private investment. This is because of the pricing policies of transmission services, tariffs, and especially for investment risks. Investment risks are due to the uncertain behaviour of power systems that discourage investors to invest in the transm...

This paper attempts to address a puzzle in China’s investment pattern: despite high aggregate investment and remarkable economic growth, negative net investment is commonly found at the microeconomic level. Using a large firm-level dataset, we test three hypotheses to explain the existence and extent of negative investment in each ownership group: what we term the efficiency (or restructuring) ...

This paper investigates the determinants of private investment in Senegal over the period of 1970-2000. It first tests the variables for unit root using two, relatively, new tests namely the Dickey-Fuller generalised least square de-trending test proposed by Elliot et al. (1996) and the Ng-Perron test following Ng and Perron (2001). The long run private investment equation is derived using the ...

This paper analyzes how certain incentives given to private concessionaires, in publicprivate partnerships, should be optimally determined to promote immediate investment, in a real options framework. Our model extends previous real options models, by considering that investment cost is lower than the project value only up to a certain demand level. This constrained growth model, while having t...