In Iran, interest rate is regulated by government by setting a ceiling for the credits allocated to various economic sectors. In recent years, the old theory of financial repression in the form of reducing interest rate of credits has been considered as a necessity to stimulate and encourage investment and economic sectors expansion in Iran. This study investigates the effects of this poli...

The relationship between inventory investment and the real interest rate has been difficult to assess empirically. Recent work has proposed a linear-quadratic inventory model with time-varying discount factor to identify the effects of real interest rate on inventory investment. The authors show that this framework does not separately identify the effects of real interest rate on inventory inve...

A firm owns the investment rights over one undeveloped oilfield with technical uncertainties on the size and quality of the reserve. In addition, the long run expected oil price follows a stochastic process. The firm needs to select the best alternative of investment in information with different costs and different revelation powers. The modeling of technical uncertainty uses the practical con...

This paper studies optimal investment in sunk assets for a ̄rm facing uncertain future demand and costs. The investment problem is decomposed into decisions over scale and timing which are in°uenced by convex adjustment costs and the feasibility of delaying investment. The value of the resulting real option to delay behaves as expected in response to increases in demand and cost uncertainty but...

In Brazil, Energy Market players dedicate many efforts in valuation and optimal allocation of capital decision to implement projects, due the large candidate projects number in their investment portfolios. The strategic decisions of those players should choose the projects subset that will be implemented, because usually, they don ́t have the financial resources to implement all then. Many are t...

This paper examines the effect of local government debt (LGD) and real estate investment on corporate investment. It finds that increase in LGD leads to a decline crowding-out is mitigated by interaction The effects are channeled raising costs reducing financing. impact more pronounced for firms eastern regions nonresource-based cities, large private firms.