A mathematical and graphical treatment of the Q-theory extension of the Basic Real Business Cycle model of Prescott indicates that several key results are robust to both investment adjustment costs and to variation in the shape of the utility function and the production function while other customary results are fragile. It also demonstrates some of the richness of general equilibrium analysis....

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 ...

Background and objective Intensive livestock farming in Germany is characterized by two facts. First, the production seems hardly to respond to the considerable price changes that occurred during the past decades. Second, the spatial allocation of production is rather unequal, though no special natural conditions are required for this business. Such an unequal distribution is not desired by agr...

Investments in technology create a large amount of capital investments by major companies. Assessing such investment projects is identified as critical to the efficient assignment of resources. Viewing investment projects as real options, this paper expands a method for assessing technology investment decisions in the linkage existence of uncertainty and competition. It combines the game-theore...

We analyze the investment decision of a ...rm that may complete a project either in one lump or in smaller parts at distinct points in time. The ...rm faces a trade-o¤ between the cost savings that arise when the project is completed in one go and the additional ‡exibility that arises when the ...rm is able to respond to resolving uncertainty by choosing optimal timing individually for each sta...

We advance the theory pertaining to IT governance and portfolio management. We specifically examine how the portfolio characteristics can influence IT investment allocation. We propose two portfolio characteristics – flexibility and diversity. We define the flexibility as the number of IT investment choice, and the diversity as the dissimilarity of IT investment choice. Using the Monte Carlo si...

Most firms do not make explicit use of real option techniques in evaluating investments. Nevertheless, real option considerations can be a significant component of value, and firms which approximately take them into account should outperform firms which do not. This paper asks whether the use of seemingly arbitrary investment criteria, such as hurdle rates and profitability indexes, can proxy f...

empirical studies show that there is stronger dependency between large losses than large profit in financial market, which undermine the performance of using symmetric distribution for modeling these asymmetric. that is why the assuming normal joint distribution of returns is not suitable because of considering the linier dependence, and can be lead to inappropriate estimate of var. copula theo...

in the process of investment decision making, next to financial indicators many other aspects of investment projects are increasingly often considered. this leads to the multi-criteria evaluation of a project. the advantage of multi-criteria methods is the ability to take into account all (not only financial) aspects of the attractiveness of an investment project. the selection of criteria of p...