Optimal investment policy with fixed adjustment costs and complete irreversibility

<p>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:	2007-11
Authors:	Roys, Nicolas
Institutions:	Centre for Microdata Methods and Practice (CEMMAP)

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Extent:	application/pdf
Series:	CeMMAP working papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number CWP29/07
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; D21 - Firm Behavior ; E2 - Consumption, Saving, Production, Employment, and Investment
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005547927