This paper analyzes the relationships among investment, , and cash flow in a tractable stochastic model in which marginal  and average  are identically equal. In the special, but widely used, case of quadratic adjustment costs, it derives an expression for  that is in closed form, up to an additive constant. After analyzing the impact of changes in the distribution of the marginal operating...

This paper analyses the influence of the capital market on the labour market. Especially the impact of start-up financing on the structure of unemployment is of interest. We use a crosscountry panel data analysis to examine how venture capital investment influences disaggregate unemployment. As we expected, venture capital investment has different influences on sectoral-, educationaland occupat...

a r t i c l e i n f o We re-evaluate the cash flow–investment relation from a new angle in a setting where the firm can access capital markets and faces different investment opportunity sets. Instead of replying on cash flow, we introduce other forms of finance to interact with investment. We find that financial variables enter significantly into the investment regressions at different timing. ...

This paper explores the dynamics of income inequality by studying the evolution of human capital investment and neighborhood choice for a population of families. Parents affect the conditional probability distribution of their children's income through the choice of a neighborhood in which to live. Neighborhood location affects children both through local public finance of education as well as ...

Literature in capital theory takes it for granted that the capital stock is quasi-…xed and always fully utilized and that net investment to the capital stock is the main source of variation in capital input. This study integrates varying capacity utilization into capital investment models with irreversibility under uncertainty. The result shows that the capacity utilization rate varies as uncer...

Real options theory suggests that managerial flexibility embedded within irreversible investments can account for a significant value in project valuation. Although the argument has become the dominant focus of capital investment theory over decades, yet recent survey literature in capital budgeting indicates that corporate practitioners still do not explicitly apply real options in investment ...

abstract this study aims to explore the impact of human resources investment on competitive advantage that incorporates human capital as a mediator variable. for this purpose a questionnaire was designed to collect data of the research variables. validity and reliability of measurement instruments was obtained using confirmatory factor analysis. questionnaire was then distributed among a sample...

In this paper we evaluate quantitatively the relationship between economic and demographic growth. We use simple models of endogenous growth, featuring human capital investment at the individual level in conjunction with either of two models of fertility choice, the B&B dynastic motive, and the B&J lateage-security motive. We find that exogenous improvements in agespecific survival probabilitie...

Investment is often irreversible: once installed, capital has little or no value unless used in production. This paper proposes, solves and characterizes a model of sequential irreversible investment by a firm facing uncertainty in technology, demand and price of capital. The solution can be found in closed form if simple (but not totally unrealistic) functional forms are assumed, and can be gi...