Profitability, Capacity and Uncertainty: A Model of UK Manufacturing Investment
(2005)
Journal Article
Driver, C., Temple, P., & Urga, G. (2005). Profitability, Capacity and Uncertainty: A Model of UK Manufacturing Investment. Oxford Economic Papers, 57(1), 120-141. https://doi.org/10.1093/oep/gpi001
Standard models fail to explain variation in UK capital investment. This paper develops and tests a new theory based on the insights of Edmond Malinvaud, in which investment under uncertainty is adjusted to balance the cost of excess and deficient ca... Read More about Profitability, Capacity and Uncertainty: A Model of UK Manufacturing Investment.