Several papers at this conference have stressed the favorable effect on economic growth of increases in business investment, especially investment in machinery and equipment. The authors of these papers have reminded us that such investment does more than increase the capital stock. Investment also embodies new technologies and may involve externalities that cause the national return to private...

We study investment cycles and information flows in a model of social learning in which investment returns fluctuate according to a Markov process. In our Waiting Game, agents observe the investment history and a private signal correlated with the current period’s investment return. Agents then decide whether to invest in round 1 or to delay their decision to round 2 of the current period. Casc...

We investigate how private information and monitoring affects both the sensitivity of investment to internally generated cash flows and the role of accounting quality in reducing this sensitivity. We expect financing frictions to be lower when debt is obtained from banks with private information and when banks place direct restrictions on investments. We also argue that access to private inform...

in this paper, we analyze the effect of lack of capital investment on energy projects using game theory in the guise of cooperative games. we focus on the energy projects in the provincial level as case study during 2010-2011. therefore, we design a theoretical model of the lack of capital investment as a factor influencing the implement of energy projects. in the experimental section, we deter...

II The UK higher education sector creates far-reaching benefits for the public, private individuals and businesses, and is funded by a mix of public and private investment. Within this funding model, there are a number of possible sources of increased investment for universities. However, while it is important to explore all options, this document shows that public funding is constrained, while...

Earlier studies have established guidelines to optimize the capital structure of a privatized project. However, in the US, many Public-Private Partnership (PPP) projects may not be fully self-financed through toll or other operating revenues due to insufficient revenue streams. With the limited debt capacity secured by toll revenues, most PPP projects must be backed by both private equity inves...

We analyze the welfare e¤ect of governmental regulation for individuals who consider anticipated regret in their decision making process. While governmental policies by directing choice distort individual decisions in the private market they can alleviate individuals’pain associated with the feeling of regret. We specify a general model to highlight this trade-o¤ and investigate two policies mo...