Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062274 | Economics Letters | 2006 | 7 Pages |
Abstract
Market power, irreversibility and returns-to-scale decisively determine how uncertainty affects investment. We empirically show that this relationship is positive when deviations from the Neoclassical paradigm are absent. As frictions are introduced the positive sign gradually dies out and turns negative.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Konstantinos Drakos, Eleftherios Goulas,