Irreversible investment under predictable growth: why land stays vacant when housing demand is booming

DOI10.1016/J.JET.2023.105776MaRDI QIDQ6139990zbMATH OpenFDO

Authors Rutger-Jan Lange, Coen N. Teulings

Publication date 19 January 2024

Published in Journal of Economic Theory (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.1016/J.JET.2023.105776

zbMATH Keywords

irreversible investmentoptimal stoppingreal estatereal optionsurban growth

Mathematics Subject Classification ID

Stopping times; optimal stopping problems; gambling theory (60G40) Corporate finance (dividends, real options, etc.) (91G50)

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Cites work

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• Three ways to solve for bond prices in the Vasiček model

Cited in

(1)

• News and firm entry: the role of the waiting option

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