01729cas a2200241 a 4500 AALejournalIMF000519 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858303 1018-5941 BD-DhAAL BD-DhAAL Pattillo, Catherine. Investment, Uncertainty, and Irreversibility in Ghana / Catherine Pattillo. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Panel data on Ghanaian manufacturing firms are used to test predictions from models of irreversible investment under uncertainty. Information on the entrepreneur's subjective probability distribution over future demand for the firm's products is used to construct the expected variance of demand, which is used as a measure of uncertainty. Empirical results support the prediction that firms wait to invest until the marginal revenue product of capital reaches a firm-specific hurdle level. Moreover, higher uncertainty raises the hurdle level that triggers investment, and uncertainty has a negative effect on investment levels that is greater for firms with more irreversible investment. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1997/169 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/169/001.1997.issue-169-en.xml IMF e-Library