Irreversible Investment and the Expected Capital Stock with Stationary Uncertainty.
The paper analyses irreversible investment under stationary uncertainty in a competitive sector. It is shown that while future uncertainty reduces the desired capital stock, over time the expected actual capital stock is higher under uncertainty with irreversibility.
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| Format: | Journal article |
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1999
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Irreversible Investment and the Expected Capital Stock with Stationary Uncertainty.
Published 1997
Working paper