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Expropriation risk, investment decisions and economic sectors

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dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorRestrepo Ochoa, Diana Constanza
dc.contributor.authorVaz Antunes Pereira Correia, José Ricardo
dc.contributor.authorPeña, Juan Ignacio
dc.contributor.authorPoblación, Javier
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economía de la Empresaes
dc.date.accessioned2014-09-02T15:48:34Z
dc.date.available2014-09-02T15:48:34Z
dc.date.issued2014-09
dc.description.abstractWe build a Real Options model to assess the importance of private provisionand the impact of expropriation risk on investment timing, investmentvolumes, governmental costs and social welfare. We consider two types ofbusinesses (essential and non essential businesses) and two stages (operatingand investment opportunities), and answer questions regarding three maintopics: the firm's reaction to expropriation risk, the government drivers toexpropriate, and the costs this generates in terms of welfare. We find thatthe firm makes suboptimal investment decisions. When we endogenize thereputational costs of expropriation, results show that the decision of the governmentregarding the level of political risk will largely depend on the typeof business. However, in terms of welfare it is never optimal to expropriateen
dc.format.mimetypeapplication/pdf
dc.identifier.issn2341-0795
dc.identifier.repecwb142309
dc.identifier.urihttps://hdl.handle.net/10016/19279
dc.identifier.uxxiDT/0000001262es
dc.language.isoenges
dc.relation.ispartofseriesBusiness Economic Seriesen
dc.relation.ispartofseries14-09
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.jelH80
dc.subject.jelG38
dc.subject.otherExpropriation risken
dc.subject.otherExpropriation Optionen
dc.subject.otherInvestment optionen
dc.subject.otherAbandonment optionen
dc.subject.otherCosts of expropriationen
dc.titleExpropriation risk, investment decisions and economic sectorsen
dc.typeworking paper*
dc.type.hasVersionSMUR*
dspace.entity.typePublication
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