کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5099400 1377005 2008 23 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Finite project life and uncertainty effects on investment
موضوعات مرتبط
مهندسی و علوم پایه ریاضیات کنترل و بهینه سازی
پیش نمایش صفحه اول مقاله
Finite project life and uncertainty effects on investment
چکیده انگلیسی
This paper revisits the important result of the real options approach to investment under uncertainty, which states that increased uncertainty raises the value of waiting and thus decelerates investment. Typically in this literature projects are assumed to be perpetual. However, in today's economy firms face a fast-changing technology environment, implying that investment projects are usually considered to have a finite life. The present paper studies investment projects with finite project life, and we find that, in contrast with the existing theory, investments may be accelerated by increased uncertainty. It is shown that this particularly happens at low levels of uncertainty and when project life is short.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Economic Dynamics and Control - Volume 32, Issue 7, July 2008, Pages 2191-2213
نویسندگان
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