Journal article
Pursuing the wrong options? Adjustment costs and the relationship between uncertainty and capital accumulation.
- Abstract:
- Abel and Eberly (1999) prove that uncertainty has an ambiguous effect on long run capital accumulation in a real options model. We show that, with adjustment costs quadratic in investment, more uncertainty reduces capital and this effect may be large.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
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(Preview, Accepted manuscript, pdf, 316.1KB, Terms of use)
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- Publisher copy:
- 10.1016/j.econlet.2011.01.020
Authors
- Publisher:
- Elsevier
- Journal:
- Economics Letters More from this journal
- Volume:
- 111
- Issue:
- 3
- Pages:
- 249 - 251
- Publication date:
- 2011-06-01
- DOI:
- ISSN:
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0165-1765
- Language:
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English
- UUID:
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uuid:dd7c5e46-d0aa-4f86-9828-c82dd81d9e50
- Local pid:
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oai:economics.ouls.ox.ac.uk:15086
- Deposit date:
-
2011-08-16
Terms of use
- Copyright holder:
- Elsevier BV
- Copyright date:
- 2011
- Notes:
- Copyright 2011 Elsevier B.V. All rights reserved. NOTICE: this is the author's version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 111, 3, (June 2011) DOI#10.1016/j.econlet.2011.01.020
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