Center for Energy and Environmental Policy Research: Recent submissions

Now showing items 100-102 of 334

    • Economic instability and aggregate investment 

      Pindyck, Robert S.; Solimano, Andrés (MIT Center for Energy and Environmental Policy Research, 1993)
      A recent literature suggests that because investment expenditures are irreversible and can be delayed, they may be highly sensitive to uncertainty. We briefly summarize the theory, stressing its empirical implications. We ...

    • Short-term shocks, reversion, and long-term decision-making 

      Laughton, David G.; Jacoby, Henry D. (MIT Center for Energy and Environmental Policy Research, 1993)
      Many observers claim that discounted cash-flow methods lead to a neglect of long-term and strategic decision-making. Using modern asset pricing methods, we examine one possible reason for this problem. If the cash-flows ...

    • Discounting rules for risky assets 

      Myers, Stewart C.; Ruback, Richard S. (MIT Center for Energy and Environmental Policy Research, 1993)
      This paper develops a new rule for calculating the discount rate to value risky projects. The rule works under any linear asset pricing model and any equilibrium theory of debt and taxes. If securities are priced by the ...