Optimal investment policy with fixed adjustment costs and complete irreversibility

No CWP29/07, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

Abstract:

We develop and solve analytically an investment model with fixed adjust-ment costs and complete irreversibility that reproduces observed investment dynamics at the micro-level. We impose a minimal set of restrictions on technology and uncertainty. Most of the results duplicate or generalize earlier findings that have been established either by simulations or under contrefactual assumptions.

JEL-codes: C61 D21 E2 (search for similar items in EconPapers)
Date: 2007-11-24
New Economics Papers: this item is included in nep-bec, nep-dge and nep-mac
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Related works:
Journal Article: Optimal investment policy with fixed adjustment costs and complete irreversibility (2014)
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