Real options in a Ramsey style growth model

Hanno Dihle

This paper studies the aggregate implications of microeconomic investment irreversibility and idiosyncratic uncertainty in a simple growth model by highlighting real option effects. We endogenize the drift rate of real option by connecting it to the state of the economy. Thereby, we extend the analysis of the optimal capital accumulation policy in the firm sector and show the different implications of idiosyncratic and aggregate uncertainty on growth dynamics.

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Year of publication:	2015
Authors:	Dihle, Hanno
Publisher:	Freiburg : Univ., Dep. of International Economic Policy
Subject:	Irreversible investment \| Idiosyncratic uncertainty \| real options \| growth \| Realoptionsansatz \| Real options analysis \| Investition \| Investment \| Wachstumstheorie \| Growth theory \| Risiko \| Risk \| Investitionsentscheidung \| Investment decision \| Optionspreistheorie \| Option pricing theory

Extent:	Online-Ressource (32 S.) graph. Darst.
Series:	Discussion paper series. - Freiburg, Breisgau : [Verlag nicht ermittelbar], ISSN 1866-4113, ZDB-ID 2462412-3. - Vol. 32
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/147446 [Handle]
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; E10 - General Aggregative Models. General ; E22 - Capital; Investment (including Inventories); Capacity ; O40 - Economic Growth and Aggregate Productivity. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011399007