We re-examine the basic investment problem of deciding when to incur a sunk cost to obtain a stochastically fluctuating benefit. The optimal investment rule satisfies a trade-off between a larger versus a later net benefit; we show that this trade-off is closely analogous to the standard...

Frontmatter -- Contents -- Preface -- Part I. Introduction -- Chapter 1. A New View of Investment -- Chapter 2. Developing the Concepts Through Simple Examples -- Part II. Mathematical Background -- Chapter 3. Stochastic Processes and Ito's Lemma -- Chapter 4. Dynamic Optimization under...

Recent theoretical developments relating to investment under uncertainty have highlighted the importance of irreversibility for the timing of investment expenditures and their expected returns. This has subsequently stimulated a growing empirical literature which examines uncertainty and...

This paper focuses on the determinants of aggregate investment spending in the UK for the industrial and commercial company (ICC) sector. It complements recent work by Cuthbertson and Gasparro (1995), who study an augmented Tobin's q model of investment in the manufacturing sector. Important...