0 to invest too much money in a particular activity or economy:
Asset price deflation can encourage households and businesses to over-consume and over-invest.
However, the relationship between investment and probability of eviction does not confirm whether it is rational for the farmer to over-invest.
Although again two local maxima exist, rather than over-invest to reduce uncertainty, the farmer prefers to postpone most of her investment to avoid the downside risk.
It is always a mistake to over-invest in a novelty before one can see some of the difficulties.
One of the reasons for privatisation was that governments were not in the right position to determine proper investment levels; they would either under-invest or over-invest.
It is because of this consumption component that people tend to over-invest.
Because of the confusion between consuming and investing, they may over-invest or under-invest compared to what they would do if the investment were clear.
If companies' profits to capital ratio is regulated at a certain percentage then there is a strong incentive for companies to over-invest in order to increase profits overall.
I accept that we probably over-invested in the private sector abroad during the two years prior to 1965.
