Bond, Stephen R.; Söderbom, Måns; Wu, Guiying - Nationalekonomiska institutionen, Handelshögskolan - 2010
bel and Eberly (1999) show that the effect of uncertainty on long run capital accumulation is ambiguous in a real options model with irreversible investment. We show that a higher level of uncertainty tends to reduce expected capital stock levels in a model with strictly convex adjustment costs....