Irreversible Investment in Stochastically Cyclical Markets
نویسندگان
چکیده
منابع مشابه
Incomplete markets, ambiguity, and irreversible investment
The problem of irreversible investment with idiosyncratic risk is studied by interpreting market incompleteness as a source of ambiguity over the appropriate no-arbitrage discount factor. The maxmin utility over multiple priors framework is used to model and solve the irreversible investment problem. Multiple priors are modeled using the notion of k-ignorance. This set-up is used to analyze fin...
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There are two facts related to the reallocation of physical assets across plants. In the macro level, capital reallocation, measured as the aggregate sales of used capital, is procyclical. In the micro level, selling used capital is costly. In this paper, I investigate the quantitative contribution of adverse selection in the used capital market towards generating the procyclical capital reallo...
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ژورنال
عنوان ژورنال: Journal of Economics & Management Strategy
سال: 2012
ISSN: 1058-6407
DOI: 10.1111/j.1530-9134.2012.00343.x