Irreversibility and the explanation of investment behavior

The explanation of aggregate and sectoral investment behavior has been one of the less successful endeavors in empirical economics. Existing econometric models have had little success in explaining or predicting investment spending. This may be because most such models fail to account for the irreve...

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Bibliographic Details
Main Author: Pindyck, Robert S.
Format: Working Paper
Published: MIT Center for Energy and Environmental Policy Research 2009