haku: @author Fatás, A. / yhteensä: 6
viite: 4 / 6
| Tekijä: | Fatas, A. Metrik, A. |
| Otsikko: | Irreversible investment and strategic interaction |
| Lehti: | Economica
1997 : FEB, VOL. 64:253, p. 31-47 |
| Asiasana: | INVESTMENTS STRATEGY STRATEGIC PLANNING COMPANIES MACROECONOMICS UNCERTAINTY |
| Kieli: | eng |
| Tiivistelmä: | This study illustrates a new avenue for the effects of uncertainty and information on the macroeconomy by introducing an aggregate demand externality into a model of irreversible investment. The results establish the mechanism in which increases in uncertainty can lead to suboptimal recessions. Even if the agents are allowed to coordinate to the best possible equilibria, these inefficient outcomes occur. The result is driven by the external effects of firms' investment decisions. The model is not universal or a complete description of the causes of business cycles. |
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