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Virtual worlds are relatively nascent IT platforms with the potential to radically transform business processes V and generate significant payoffs. However, in striving to achieve specific outcomes, firms may incur [...]

This paper examines the effects of IT-related spillovers on firm-level productivity improvements over a long-1 term horizon. In contrast, prior research has largely focused on the direct and contemporaneous impacts [...]

This paper uses newly collected panel data that allow for significant improvements in the measurement and modeling of information technology (IT) productivity to address some longstanding empirical limitations in the [...]

In a recent contribution to this journal, Decamps et al. [Decamps, J.-P., T. Mariotti, S. Villeneuve. 2005. Investment timing under incomplete information. Math. Oper. Res. 30(2) 472-500] analyze the decision [...]

Recent developments in investment research have highlighted the importance of non-convexities and irreversibilities in firms' adjustment of quasi-fixed inputs. Aggregation across capital goods may smooth out the discontinuities associated with the adjustment of individual assets. Lack of suitable data is one of the reasons why empirical work has typically relied on the assumption of capital homogeneity. In this paper we exploit a data set of 1539 Italian firms which allows us to disaggregate capital into equipment and structures, and purchases and sales of assets. We construct measures of fundamental Q to capture investment opportunities associated with each asset. We uncover the pattern of dynamic adjustment by using non-parametric techniques to relate each individual investment to its own fundamental Q. JEL classification: D24; G31; C33; C34 Keywords: Investment; Heterogenous capital; Non-convexities; Fundamental Q; Panel data

Environmental pollution reduction programs and real options investments decision making for this purpose is discussed.

Using panel data from 16 Organization for Economic Cooperation and Development (OECD) countries for the period 1981-2000, we examine the significance of international knowledge spillovers through inward and outward foreign direct investment (FDI), intermediate goods imports, and a disembodied direct channel. Knowledge spillovers through the disembodied direct channel are approximated by using a measure of technological proximity and patent citations between countries. Using estimation models that reflect recent developments in non-stationary panel data econometrics, we show that international knowledge spillovers through inward FDI and the disembodied direct channel are significant and robust. In contrast, outward FDI and imports of intermediate goods are not conducive to international knowledge spillovers. JEL classification: O30; O47; O57; C23; F01 Keywords: Spillovers; Investment; Imports; Technology proximity; Panel cointegration

The effects of defense spending on investments in the United States are analyzed. It is found that the government spending in non - defense have a better positive effect on the investments than the defense spending.

To increase your bottom line, spread your money around. Diversify. While that advice sounds simple, few people truly understand how to construct a solid investment portfolio. They hear buzz about [...]

In this contribution we will briefly discuss the shareholders' need for social, ethical and environmental information and the efforts of corporations to address this need. Looking at three cases, we will raise some doubt with regard to the adequacy of corporate SEE reporting to meet the needs of shareholders. We will discuss the following three cases: BP's investments in Azerbaijan, Nike's management of its labour conditions, of child labour and security issues, and Monsanto's production of genetically modified seeds. KEY WORDS: social, ethical and environmental information, investments, SEE reporting, Nike, BP, Monsanto

Like excited three-year-olds in a Triple Crown race, the market's been forging ahead for the past several months. And our participants have been running far ahead of the pack. In [...]

Pain turns to pleasure these days when many folks check their 401(k) statements. The market rally that began last year has raised hopes and lifted portfolio returns. But wary investors [...]

A cooperative relationship is examined between two economic agents, in which one agent can make investments in the relationship to reduce the probability that the other agent defects. It is shown that the relationship between investment and probability of defection depends on the type of uncertainty considered and the effects of parameter changes are analyzed on the optimal level of investment.

This article studies the role of risk sharing in dynamic credit relationships that are secured by physical collateral. It is shown that, when borrowers and lenders cannot commit not to terminate relationships (through default in the first case and liquidation in the second), overinvestment is optimal. Overinvestment facilitates risk sharing in this context: It occurs in expectation of periods in which lenders are unwilling to supply all the funds necessary to achieve complete risk sharing. Typically, overinvestment happens when investment decreases; it slows down the pace at which the capital stock is reduced and therefore results in production smoothing.

It is shown that investment under financing constraints can be modeled as a one-sided deviation from a frictionless investment level, and that effects of financing constraints can be identified and [...]

A research estimating the cost of alternative pension guarantees by varying the guarantee design, the investment portfolio, and the investment horizon is presented. The impact of guarantee design on cost by contrasting a principal guarantee with a bond guarantee is evaluated.

1. Introduction The tradeoff of risk and return is becoming ever more important for individuals, institutions, and public policy. In fact, Bernstein (1996) suggests that the rational analysis of risk […]

The urban property investment in seventeenth-century London is described. The conversion of real estate practices in institution of residential investment has helped to attract the necessary capital to finance London's real estate market.