Optimal investment policy with fixed adjustment costs and complete irreversibility

We develop and solve analytically an investment model with fixed adjust-ment costs and complete irreversibility that reproduces observed investment dynamics at the micro-level. We impose a minimal set of restrictions on technology and uncertainty. Most of the results duplicate or generalize earlier findings that have been established either by simulations or under contrefactual assumptions.

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Year of publication:	2007
Authors:	Roys, Nicolas
Publisher:	London : Centre for Microdata Methods and Practice (cemmap)
Subject:	Investition \| Anpassungskosten \| Irreversibility of Investment \| Dynamische Optimierung \| Investment , Adjustment Costs , Irreversibility , Dynamic Programming

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Series:	cemmap working paper ; CWP29/07
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.1920/wp.cem.2007.2907 [DOI] 550549250 [GVK] hdl:10419/79357 [Handle] RePEc:ifs:cemmap:29/07 [RePEc]
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; D21 - Firm Behavior ; E2 - Consumption, Saving, Production, Employment, and Investment
Source:	EconStor

Persistent link: https://www.econbiz.de/10010318532