LØKKA, ARNE; ZERVOS, MIHAIL - In: International Journal of Theoretical and Applied … 14 (2011) 02, pp. 187-196
We consider an investment project that produces a single commodity. The project's operation yields payoff at a rate that depends on the project's installed capacity level and on an underlying economic indicator such as the output commodity's price or demand, which we model by an ergodic,...