ABSTRACT
We have focused our attention on the fact that in an uncertain world, expectations play an important role when decisions about production and investment are made. In spite of dealing with different problems, decisions about production and investment are interrelated because, once is explicitly considered, long term decisions have to be translated into short term procedures. We suggested that several variables could be identified as guiding investment decisions: expectations about prospective yields, internal savings and unexploited internal facilities to diversify the production line and, finally, the conditions to debt finance new investment plans.
KEYWORDS:
Post-Keynesianism; uncertainty; investment