Martzoukos, Spiros H - In: Review of Quantitative Finance and Accounting 16 (2001) 3, pp. 251-67
In this article we use the hysteresis model of investment developed by Brennan and Schwartz, and Dixit, and we extend it to capture the impact of interacting uncertainties on a firm with foreign operations. We develop a three-country, four-factor model where both continuous revenues and...