Investment, uncertainty, and irreversibility in Ghana

被引:0
作者
Pattillo, C
机构
来源
INTERNATIONAL MONETARY FUND STAFF PAPERS | 1998年 / 45卷 / 03期
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暂无
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Panel data on Ghanaian manufacturing firms are used to test predictions from models of irreversible investment under uncertainty. Information on the entrepreneur's subjective probability distribution over future demand for the firm's products is used to construct the expected variance of demand, which is used as a measure of uncertainty. Empirical results support the prediction that firms wait to invest until the marginal revenue product of capital reaches a firm-specific hurdle level. Moreover, higher uncertainty raises the hurdle level that triggers investment, and uncertainty has a negative effect on investment levels that is greater for firms with more irreversible investment. [JEL D81, D92, C24].
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页码:522 / 553
页数:32
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