Optimal capital investment under uncertainty: An extension

This paper develops a model for optimal capital investment in continuous time when both existing and new capital stocks are subject to uncertainty. The model is generalized to allow for large and infrequent changes in the dynamics of the capital stock, which may arise as a result of natural and man-made disasters.

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Year of publication:	2008
Authors:	Jang, Inwon ; Huh, Hyeon-seung ; Wong, Richard
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 5.2008, 4, p. 1-7
Publisher:	AccessEcon

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	E2 - Consumption, Saving, Production, Employment, and Investment ; C6 - Mathematical Methods and Programming
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005416933