Financing investment under fundamental uncertainty and instability: A heterodox microeconomic view

Tae-Hee Jo ()

MPRA Paper from University Library of Munich, Germany

Abstract: The business enterprise in the real world wrestles with fundamental uncertainty and instability. Key enterprise decisions such as pricing, financing, and investment are thus made strategically rather than optimally. Heterodox economists are, however, divided in the account of business enterprise's financing behavior; macroeconomists put an emphasis on external financing, whereas microeconomists on internal financing. Moreover, they often stop short of establishing a link between the two. Drawing upon the social provisioning perspective, this essay aims at providing a new light on financing focusing on strategic enterprise decision-making mechanisms.

Keywords: Business enterprise; pricing; financing; investment; uncertainty; instability; social provisioning process; social surplus; effective demand (search for similar items in EconPapers)
JEL-codes: B50 D21 G30 (search for similar items in EconPapers)
Date: 2012-06-13
New Economics Papers: this item is included in nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://mpra.ub.uni-muenchen.de/39450/1/MPRA_paper_39450.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/39582/1/MPRA_paper_39582.pdf revised version (application/pdf)

Related works:
Journal Article: Financing Investment under Fundamental Uncertainty and Instability: A Heterodox Microeconomic View (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:39450

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