A model of sequential investment

被引：61

作者：

Bar-Ilan, A

Strange, WC ^{[1
]}

机构：

[1] Univ British Columbia, Fac Commerce, Vancouver, BC V6T 1Z2, Canada

[2] Univ Haifa, Dept Econ, IL-31999 Haifa, Israel

来源：

JOURNAL OF ECONOMIC DYNAMICS & CONTROL | 1998年 / 22卷 / 03期

关键词：

sequential investment; lags; suspension;

D O I：

10.1016/S0165-1889(97)00066-3

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This paper specifies a model of a two-stage sequential investment when the stages take time to complete. It presents algebraic solutions for an individual firm's optimal sequential investment with costless suspension, without suspension, in the intermediate case of costly suspension, and for aggregate investment. With suspension, the first-stage trigger is below the second-stage trigger for sufficiently long lags and high levels of output price uncertainty. Thus, the firm may carry out 'exploratory' investment. We also evaluate the comparative statics of investment, and show how the patterns of project costs and lags affect the incentive to invest. (C) 1998 Elsevier Science B.V. All rights reserved.

引用

页码：437 / 463

页数：27

共 20 条

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[2]

ARROW KJ, 1962, REV ECON STUD, V29, P153

[3]

BALDWIN CY, 1982, J FINANC, V37, P763

[4]

BarIlan A, 1996, AM ECON REV, V86, P610