An exact solution for the investment and value of a firm facing uncertainty, adjustment costs, and irreversibility

DOI10.1016/S0165-1889(97)00005-5zbMath0899.90007OpenAlexW3121413553MaRDI QIDQ1391766

Andrew B. Abel, Janice C. Eberly

Publication date: 23 July 1998

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/s0165-1889(97)00005-5

zbMATH Keywords

investmentirreversibility

Mathematics Subject Classification ID

Production theory, theory of the firm (91B38)

Related Items (10)

Approximating Nash equilibrium for production control with sticky price ⋮ Negative uncertainty sensitivity of investment and market structure ⋮ On irreversible investment ⋮ Solving singular control from optimal switching ⋮ Factor price uncertainty, technology choice and investment delay ⋮ Real R\&D options with time-to-learn and learning-by-doing ⋮ Equilibrium in a production economy ⋮ A Mean-Variance Approach to Capital Investment Optimization ⋮ Sequential Capacity Expansion Options ⋮ Multinationals' response to repatriation restrictions

Cites Work

• Irreversible investment
• A Stochastic Model of Investment, Marginal q and the Market Value of the Firm
• Tobin's Marginal q and Average q: A Neoclassical Interpretation
• Investment Under Uncertainty
• Adjustment Costs in the Theory of Investment of the Firm
• Options, the Value of Capital, and Investment

This page was built for publication: An exact solution for the investment and value of a firm facing uncertainty, adjustment costs, and irreversibility