Investors Facing Opportunistic Governments: Is it Really Good to "Know the Market" Before Investing?

Michaela Erbenova () and Steinar Vagstad

Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen

Abstract: When a government cannot commit to future policies, investors face the risk of opportunistic behavior in addition to uncertain market conditions. We show that although reducing market uncertainty is sometimes essential for investment, it may aggravate problems of opportunism.

Keywords: RISK; INFORMATION; INVESTMENTS (search for similar items in EconPapers)
JEL-codes: D82 L51 (search for similar items in EconPapers)
Pages: 26 pages
Date: 1999
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Citations: View citations in EconPapers (6)

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Journal Article: Investors Facing Opportunistic Governments: Is it Really Good to “Know the Market” before Investing? (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:bereco:201

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