Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/7102
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dc.contributor.authorDrakos, K-
dc.contributor.authorKonstantinou, P-
dc.date.accessioned2013-01-07T15:18:03Z-
dc.date.available2013-01-07T15:18:03Z-
dc.date.issued2012-
dc.identifier.citationEconomics and Finance Working Paper, Brunel University, 12-14, Sep 2012en_US
dc.identifier.urihttp://bura.brunel.ac.uk/handle/2438/7102-
dc.description.abstractWe investigate the effects of real oil prices and their uncertainty on the investment decision. Making use of plant-level data, we estimate dynamic, discrete choice models that allow modeling investment inaction, under different assumptions related to initial conditions and unobserved heterogeneity. We find that increases in real oil price changes and in real oil price uncertainty significantly reduce the likelihood of investment action – in line with the predictions of irreversible investment theory. We also document that the investment decisions exhibit strong pure state dependence and are also significantly affected by initial conditions.en_US
dc.language.isoenen_US
dc.publisherBrunel Universityen_US
dc.subjectInvestmenten_US
dc.subjectReal oil pricesen_US
dc.subjectPlanten_US
dc.subjectReal optionsen_US
dc.subjectUncertaintyen_US
dc.titleInvestment decisions in manufacturing: Assessing the effects of real oil prices and their uncertaintyen_US
dc.typeArticleen_US
pubs.organisational-data/Brunel-
pubs.organisational-data/Brunel/Brunel Active Staff-
pubs.organisational-data/Brunel/Brunel Active Staff/School of Social Sciences-
pubs.organisational-data/Brunel/Brunel Active Staff/School of Social Sciences/Economics and Finance-
Appears in Collections:Economics and Finance
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Dept of Economics and Finance Research Papers

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