An irreversible investment problem with a learning|by|doing feature

NBER WORKING PAPER SERIES IRREVERSIBILITY ...

assumptions that investment is irreversible and that new information about ... For example, the possibility of "learning—by—doing" induced by the ...

Strategic Irreversible Investment - Synthical

Strategic Bayesian Asset Allocation. 1 December 2019 by Vadim Sokolov ; An irreversible investment problem with a learning-by-doing feature. 24 ...

Irreversible investment, asset returns, and time-inconsistent ...

This paper introduces time-inconsistent preferences into the standard model of capacity choice and investigates its influences on entrepreneurial firms' ...

The Long-Run Effects of Corporate Tax Reforms | CREI

Together, these results suggest that an economy with lower after-tax investment frictions—which manifest in lower capital misallocation—feature.

Time for a Change: Introducing irreversible time in economics

Neither can be solved with the concepts of randomness prevalent in economics today. However, owing to 20th-century developments in mathematics these problems ...

Optimal investment with time-varying transition probabilities for ...

First, the investment is partially or completely irreversible, i.e. investment cost incurred at investment time at least cannot be recovered.

An Equilibrium Model of Irreversible Investment - CiteSeerX

The key feature of firms in the industry is that their capital stock is highly specialized and can only be used for production of the industry-specific ...

(PDF) Irreversible investment in alternative projects | T. Mariotti ...

We develop a normative model for irreversible investment problem under uncertainty using real options approach. Capacity utilization was not a major ...

Incentivizing Irreversible Investment - LSE Research Online

the attractive features of irreversible investment models is that they explain lumpiness in ... calculations embedded in the investment problem.

Real Options, Irreversible Investment and Firm Uncertainty - Brandeis

goods that are not industry or firm-specific (such as office equipment) are still partially irreversible because of the lemons problem. Abel and Eberly (1994, ...

Equilibrium Commodity Prices with Irreversible Investment and Non ...

Let us denote Ju(t, K, Q) the value function of the perfectly reversible investment/consumption problem. ... We are doing a quasi- maximum likelihood ...

The Impact of Operational Delay on Irreversible Investment under ...

While individually these features accelerate investment, when both features are in- corporated into the investment problem, the investment threshold increases ...

Elections, Uncertainty and Irreversible Investment | Cambridge Core

These investments are ones that would be impossible or costly to reverse; scholars have termed them 'irreversible investments'.Footnote Examples include housing ...

Irreversible investment in alternative projects | Economic Theory

We study the problem of a risk-neutral decision-maker who has to choose among two alternative investment projects of different scales under output price ...

The Macroeconomics of Partial Irreversibility

Second, optimal investment features an endogenous positive serial correlation in the sign of ... that face the investment problem described above.

No NEWS CAN BE GOOD NEWS: IRREVERSIBLE INVESTMENT ...

Our analysis takes place in an uncertain environment where firms must choose a level of irreversible investment. The literature on this problem is well ...

Irreversible Abatement Investment under Cost Uncertainties

1That irreversibility and uncertainty (and future learning) reduces investment is a standard conclusion of real ... Given К0, the optimization problem generates ...

IRREVERSIBLE INVESTMENTS, DYNAMIC INCONSISTENCY AND ...

problem of the representative investor to take this into account, we find that ... function of aggregate investment in period 1 while the latter is a function of.

Merton's Optimal Investment Problem with Jump Signals

However, its empirical performance is disappointing. The estimation errors of the expected rates of returns make the optimal policy degenerate, resulting in an ...

Investment Decisions with Two-Factor Uncertainty - MDPI

In the literature, we find several papers concerning investment problems where the uncertainty is driven by multi-dimensional stochastic processes, and where no ...