Investment gestation lags: the difference between time-to-build and delivery lags

Irreversible Investment, Operating Flexibility, and Time Lags

We consider an optimal investment problem when a firm such as an electric power company has the operational flexibility to expand and contract capacity with fixed cost. This problem is formulated as an impulse control problem combined with optimal stopping. Consequently, we obtain optimal investment timing, optimal capacity expansion and contraction timing, and the investment value. We also sho...

Investment Lags: A Numerical Approach

In this paper we use a mixture of numerical methods including finite difference and body fitted co-ordinates to form a robust stable numerical scheme to solve the investment lag model presented in the paper by Bar-Ilan and Strange (1996). This allows us to apply our methodology to models with different stochastic processes that does not have analytic solutions.

Learning Over Long Time Lags

The advantage of recurrent neural networks (RNNs) in learning dependencies between time-series data has distinguished RNNs from other deep learning models. Recently, many advances are proposed in this emerging field. However, there is a lack of comprehensive review on memory models in RNNs in the literature. This paper provides a fundamental review on RNNs and long short term memory (LSTM) mode...

Time-evolving distribution of time lags between commercial airline disasters

We have studied the time lags between commercial line airplane disasters and their occurrence frequency till 2002, as obtained from a freely available website. We show that the time lags seem to be well described by Poisson random events, where the average events rate is itself a function of time, i.e. time-dependent Poisson events. This is likely due to the unsteady growth of the industry. The...

Time Lags: A Feasibility Study