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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| Formato: | Working paper |
| Idioma: | English |
| Publicado: |
CSAE (University of Oxford)
1997
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