On Adjustment Costs, Profit Uncertainty and Investment Behavior

DOI10.1080/01966324.1987.10737220MaRDI QIDQ3200860zbMATHOpenAlexWikidataFDO

Authors Kevin Hastings, Sjur Didrik Flåm

Publication date 1987

Published in American Journal of Mathematical and Management Sciences (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1080/01966324.1987.10737220

zbMATH Keywords

Cobb-Douglas production functionoptimal investmentstochastic processcontinuous-timeconvex marginal adjustment costtrend-corrected jump processtrendless diffusion

Mathematics Subject Classification ID

Statistical methods; economic indices and measures (91B82) Applications of renewal theory (reliability, demand theory, etc.) (60K10) Production theory, theory of the firm (91B38) Economic growth models (91B62)

Recommendations

• INDETERMINACY AND INVESTMENT ADJUSTMENT COSTS: AN ANALYTIC RESULT
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• Uncertainty and Investment Dynamics
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• Uncertainty and the trade-off between scale and flexibility in investment
• Uncertainty, Investment, and Industry Evolution

Cites work

• scientific article; zbMATH DE number 3505981 (Why is no real title available?)
• scientific article; zbMATH DE number 3639528 (Why is no real title available?)
• A TEST OF GOODNESS OF FIT FOR SYMMETRIC RANDOM VARIABLES¹

Cited in

(9)

• Impact of uncertainty in the quality of returns on the profitability of a single-period refurbishing operation
• Multi-factor dynamic investment under uncertainty
• Deterministic and stochastic dynamic adjustment of capital investment budgets
• Functional equivalence between intertemporal and multisectoral investment adjustment costs
• Adjustment costs and indeterminacy in perfect foresight models
• A decomposition of profit loss under output price uncertainty
• Investment and the dynamic cost of income uncertainty: the case of diminishing expectations in agriculture
• A dynamic factor demand model on gas firms: application of Itō's stochastic differential equation
• Problems with identifying adjustment costs from regressions of investment on \(q\)

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