An agent optimizes over real investment and investment in information acquisition while maximizing a two-period utility that captures his ordinal certainty equivalent (OCE) preferences. Optimal investment is characterized and the impact of risk and time preferences on it is investigated

The continuous growth of house prices in Spain in recent years has been an issue with economists and market participants. It is still an issue of debate whether the increases are based in fundamentals or whether they essentially constitute a bubble. In this work we study and document the price...