An equilibrium model of irreversible investment

An equilibrium model of irreversible investment - ScienceDirect.com

In particular, due to the absence of adjustment costs, firms find it profitable to invest whenever the market value of capital exceeds its replacement cost. The ...

An Equilibrium Model of Irreversible Investment - CiteSeerX

This paper presents a general equilibrium model of a two-sector production economy with irreversible real investment. Irreversibility of investment is the most ...

A Stationary Mean-Field Equilibrium Model of Irreversible ... - arXiv

Investment is irreversible and production capacity depreciates at a constant rate. Production is subject to Gaussian productivity shocks, while ...

An equilibrium model of irreversible investment - IDEAS/RePEc

Kogan, Leonid, 2001. "An equilibrium model of irreversible investment," Journal of Financial Economics, Elsevier, vol. 62(2), pages 201-245, November.

An Equilibrium Model of Irreversible Investment | Request PDF

Specifically, I adopt the general equilibrium model of investment developed in Kogan (2001) . It is a two-sector model, in which one of the sectors is subject ...

An equilibrium model of irreversible investment - EconPapers

By Leonid Kogan; An equilibrium model of irreversible investment.

Irreversibility and Aggregate Investment | MIT Economics

(1974) in non-stochastic partial-equilibrium models of investment.' This paper discusses the relevance of uncertainty and irreversibilities to firms' invest-.

a stationary mean-field equilibrium model of irreversible investment ...

Investment is irreversible and production capacity depreciates at a constant rate. Production is subject to Gaussian productivity shocks, while ...

An RBC Model with Irreversible Investment — GDSGE Homepage

An RBC Model with Irreversible Investment ... The standard RBC model can also be solved easily using local methods. Now we consider an extension which can only ...

Irreversible Investment in General Equilibrium∗ - CiteSeerX

1. Page 3. of the economy as opposed to models in which habit formation produces time varying risk aversion to explain aggregate stock market behavior [see e.g. ...

A stationary mean-field equilibrium model of irreversible investment

René Aïd speaking at BIRS workshop, Applications of Stochastic Control to Finance and Economics, on Thursday, May 4, 2023 on the topic: A ...

Irreversible investment and industry equilibrium

We establish the equivalence of competitive industry equilibrium with a central planner's decision problem under uncertainty, when investment is irreversible.

A stationary mean-field equilibrium model of irreversible investment ...

equilibrium model of irreversible investment in a two-regime economy, Center for Mathematical. Economics Working Papers, No. 679, Bielefeld ...

Irreversible investment and industry equilibrium

An extension to the case where capital stock is subject to depreciation or productivity shocks is provided in Sect. 6. Section 7 concludes. The theory is ...

A Stationary Mean-Field Equilibrium Model of Irreversible ...

This class of games finds natural applications in the context of irreversible production expansion in dynamic oligopolies, where the dynamics of ...

[PDF] Irreversible investment in general equilibrium | Semantic Scholar

Theories of investment suggest that the option value of waiting to invest is significant in many branches of economics, where investment is irreversible.

Plant-Level Irreversible Investment and Equilibrium Business Cycles

This paper evaluates the importance of microeconomic irreversibilities for aggre- gate dynamics using a real-business-cycle (RBC) model characterized by ...

NBER WORKING PAPER SERIES IRREVERSIBILITY ...

We illustrate this principle with another example. Example: Investment nd an Energy Cartel of Uncertain Duration. We introduce a simple model of investment and ...

A GAME MODEL OF IRREVERSIBLE INVESTMENT UNDER ...

The model combines game theory and the theory of irreversible investment under uncertainty. We characterize the resulting Nash equilibrium under different ...

Plant Level Irreversible Investment and Equilibrium Business Cycles

The model is used to study the importance of investment irreversibilities for macroeco- nomic dynamics. It is found that investment irreversibilities have no ...