The Experts below are selected from a list of 175314 Experts worldwide ranked by ideXlab platform
Georgemarios Angeletos - One of the best experts on this subject based on the ideXlab platform.
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uninsured idiosyncratic Investment Risk and aggregate saving
Review of Economic Dynamics, 2007Co-Authors: Georgemarios AngeletosAbstract:Abstract This paper augments the neoclassical growth model to study the macroeconomic effects of uninsured idiosyncratic Investment, or capital-income, Risk. Under standard assumptions for preferences and technologies, individual policy rules are linear in individual wealth, ensuring that the equilibrium dynamics for aggregate quantities and prices are independent of the wealth distribution. The analysis thus remains highly tractable despite the incompleteness of markets. As compared to complete markets, the steady state is characterized by both a lower interest rate and a lower capital stock when the elasticity of intertemporal substitution is higher than the fraction of private equity in total wealth. For empirically plausible parameterizations, this condition is easily satisfied, and the reduction in aggregate saving and income is quantitatively significant. These findings contrast with Bewley models, where idiosyncratic labor-income Risk leads to higher aggregate saving and income.
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uninsured idiosyncratic Investment Risk and aggregate saving
Social Science Research Network, 2005Co-Authors: Georgemarios AngeletosAbstract:This paper augments the neoclassical growth model to study the macroeconomic effects of idiosyncratic Investment Risk. The general equilibrium is solved in closed form under standard assumptions for preferences and technologies. Relative to complete markets, the steady state is characterized by both a lower interest rate and a lower capital stock when the elasticity of intertemporal substitution is sufficiently high. For plausible calibrations of the model, the reduction in aggregate savings and income is quantitatively significant. Finally, cyclical variation in private Investment Risks is shown to amplify the transitional dynamics.
Paul M Vaaler - One of the best experts on this subject based on the ideXlab platform.
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minority rules credible state ownership and Investment Risk around the world
Organization Science, 2018Co-Authors: Barclay E James, Paul M VaalerAbstract:Research in management and related fields largely assumes that host-country state (“state”) ownership in Investment projects raises Risk for private coinvestors. We question that assumption in theorizing that minority state ownership may actually decrease Investment Risk in host countries where policy stability is low. Noncontrolling but still substantial state ownership signals to private coinvestors that states will maintain initial Investment project terms yet limit interference in project management under those same initial terms. Analyses of 1,373 Investment projects announced in 95 host countries from 1990 to 2012 support this proposition: (1) low policy stability in the host country increases Investment Risk, measured as the percentage of equity comprising all project capital funding on the announcement date, but (2) minority state ownership diminishes the Risk-increasing impact of low policy stability, and (3) the Risk-diminishing effect is greatest when policy stability is low and the state holds...
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minority rules credible state ownership and Investment Risk around the world
Social Science Research Network, 2016Co-Authors: Barclay E James, Paul M VaalerAbstract:Research in management and related fields largely assumes that state ownership in firms raises Risk for private co-investors. We question that assumption in theorizing that minority state ownership may actually decrease Investment Risk in countries where state policy stability is low. Non-controlling but still substantial equity holdings signal to private investors that states will maintain initial Investment project terms, yet limit state interference in project management under the same initial terms. Analyses of 1373 Investment projects announced in 95 countries from 1990-2012 support this proposition: 1) lower state policy stability in a country increases Investment Risk measured as percentage of equity comprising all capital funding for an Investment project on announcement date; but 2) minority state ownership diminishes the Risk-increasing impact of low policy stability; and 3) the Risk-decreasing effect of minority state ownership is greatest when policy stability is low when the state holds from 21-30% of Investment project equity. Private investors can use state equity partnership as a Risk-reducing strategy in response to low policy stability. Our study highlights where these “minority rules” hold and state ownership signals credible assurance to private co-investors in less stable countries.
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counting the investor vote political business cycle effects on sovereign bond spreads in developing countries
Journal of International Business Studies, 2005Co-Authors: Paul M Vaaler, Burkhard N Schrage, Steven A BlockAbstract:International business research has paid scant attention to whether and how electoral politics and economic policies affect foreign Investment Risk assessment, particularly in developing countries, where the last decade has seen both considerable foreign Investment and domestic progress toward democratization and electoral competitiveness. We respond with development and testing of a framework using partisan and opportunistic political business cycle (PBC) theory to predict the Investment Risk perceived by investors holding sovereign bonds during 19 presidential elections in 12 developing countries from 1994 to 2000. Consistent with our framework, we find that bondholders perceive higher (lower) Investment Risk in the form of higher (lower) credit spreads on their sovereign bonds as right-wing (left-wing) political incumbents appear more likely to be replaced by left-wing (right-wing) challengers. For international business research, our findings illustrate the promise of PBC theory in explaining the election-period behavior of sovereign bondholders and, perhaps, other investors who also ‘vote’ in developing country elections and can substantially influence the price and availability of capital there. For developing country investors and states, our findings highlight the financial effects of democracy in action, and underscore the importance of state communication with investors during election periods.
T Ouhal - One of the best experts on this subject based on the ideXlab platform.
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technical assessment economic viability and Investment Risk analysis of solar heating cooling systems in residential buildings in morocco
Solar Energy, 2018Co-Authors: T Ouhal, Saif Eddi Fertahi, Y Agrouaz, El T Rhafiki, A JamilAbstract:Abstract This paper focuses on the potential of a solar installation combining air-conditioning, heating and Domestic Hot Water (DHW) production processes intended for mass use in building sector in Morocco. The objective is to measure the relevance of the Investment in such systems through a technico-economic assessment and a Risk analysis based on classic economic choice criteria. Then, a sensitivity study was conducted to analyze the impact of the major characteristics of a solar plant project (amount of Investment, operation cost, solar sunshine, etc.) on the decision-making in various environments to conclude the technical feasibility and economic viability of these systems under Moroccan conditions. Parametric studies including the solar collectors’ technology and field area in addition to the storage tank volume were carried out to design the solar plant and to ensure its optimization in dynamic mode operation. The major finding of this work is that incrementing the collector’s field area to 30 m2 optimizes the thermal efficiency of the solar plant, and the electric booster consumption is reduced. Furthermore, it would be advantageous to use a number of collectors of 14 (a total surface of 22 m2 to satisfy) the cooling, heating and hot water needs over the year since the overall system solar fraction remain above 55% when the optimum parameters are considered. The results indicated also that solar cooling systems in hot climates are an attractive option to increase energy savings and to mitigate CO 2 emissions. In addition, the solar contribution has increased from 605 kW h to 705 kW h in winter and summer periods, respectively, while the auxiliary consumption has achieved 1450 kW h, 1875 kW h and 2300 kW h for Agadir, Tangier and Ben Guerir, respectively. However, according to the economic assessment, the high solar plant cost is a main barrier facing their implementation in Morocco. Several recommendations were drawn from the profitability study to identify the sensitive points and to consider avenues for improvement with a view to future industrialization of the combined solar thermal installation in Morocco.
Swasti Guptamukherjee - One of the best experts on this subject based on the ideXlab platform.
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Investment Risk allocation and the venture capital exit market evidence from early stage investing
Journal of Banking and Finance, 2016Co-Authors: Susan Chaplinsky, Swasti GuptamukherjeeAbstract:Abstract This study provides evidence on how venture capitalists’ (VCs’) allocations of capital to Riskier Investments, as measured by the proportion of early versus late-stage Investment in an industry, are linked to exit market conditions. Prior research has primarily focused on how VCs adjust aggregate Investment to public equity market conditions. We develop a more inclusive measure of exit market conditions that accounts for recent secular changes that have affected the industry return structure, specifically, the sharp rise in the number of failures and M&A relative to IPO exits. We show that the dollars gained relative to dollars lost in recent exits and failures are significantly positively related to VCs’ allocations to early-stage companies over the period 1990–2008. The changes in allocations are large enough to have an effect on the availability of funding for early stage companies. In sum, our evidence shows that exit market conditions have a significant and economically meaningful influence on VCs’ allocations to Riskier Investments.
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Investment Risk allocation and the venture capital exit market
Social Science Research Network, 2013Co-Authors: Susan Chaplinsky, Swasti GuptamukherjeeAbstract:The factors that drive the financing available to start-ups is a key issue for entrepreneurs, venture capitalists (VCs), and other investors in new ventures, especially in light of the difficult exit market the industry has faced over the last decade. We examine how the dollars gained and lost in recent exits and failures of venture-backed companies affect VCs’ Risk allocations (proportion of early- versus late-stage Investment) and returns over 1986-2008. Consistent with perceptions of lower profit-to-loss potential for Risky Investments, we find that VCs have significantly decreased the proportion of early stage Investment over time. Conditional on exit, lower Risk allocations at the time of Investment initiation reduce the future returns from these exits, with its impact seemingly large enough to offset the positive effects of industry downsizing since 2001. In sum, we show empirically that Risk allocation is an important channel by which VCs respond to market signals.
Alex Van De Minne - One of the best experts on this subject based on the ideXlab platform.
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do different price points exhibit different Investment Risk and return commercial real estate
Social Science Research Network, 2017Co-Authors: David Geltner, Alex Van De MinneAbstract:Conventional real estate price indices provide a single measure for the path of asset prices over time (controlling for the quality of the representative or average property). But it could be that properties have different price dynamics based on the price segment they are traded in. On the demand side, investors at different price points are differentiated by the amount of capital the investor has at their disposal and the type and source of financing. Smaller, private investors cluster at lower price points, while large institutions dominate the high price points. On the supply side, properties at different price points may serve different space markets with different types of tenants, and may reflect different supply elasticity and land/structure value ratios. This paper uses an unconventional approach, quantile regression, to estimate price indices for different price segments in commercial real estate. Our results show that there are indeed large differences in price dynamics for different price points. These differences are suggestive of a lack of integration in the property asset market, because we find apparent differences in the Risk/return relationship. Lower price point properties exhibit less Risk (in the form of volatility and cycle amplitude), but without evidence of lower total returns. Lower price point properties also show greater momentum and hence, predictability.
