Informational spillovers and the coordination of speculative investments

Francisco Gonzalez (francisco.gonzalez@uwaterloo.ca)

Canadian Journal of Economics, 2004, vol. 37, issue 1, 140-148

Abstract: The influence of informational spillovers on the entrepreneur's incentive to undertake reversible investment opportunities is considered. It is shown how investment activity can be driven by the influence that the prospect of social learning has on the option value of investment. In this context, episodes of high investment activity result from a speculative motive, and the expected short-run profitability of new investment opportunities may inadequately reflect the entrepreneurs' incentive to invest.

Date: 2004
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.jstor.org/stable/3696102 (text/html)
only available to JSTOR subscribers

Related works:
Journal Article: Informational spillovers and the coordination of speculative investments (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:37:y:2004:i:1:p:140-148

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php
office@economics.ca

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler (werner.antweiler@ubc.ca).