Arbeitspapier
Real options in a Ramsey style growth model
This paper studies the aggregate implications of microeconomic investment irreversibility and idiosyncratic uncertainty in a simple growth model by highlighting real option effects. We endogenize the drift rate of real option by connecting it to the state of the economy. Thereby, we extend the analysis of the optimal capital accumulation policy in the firm sector and show the different implications of idiosyncratic and aggregate uncertainty on growth dynamics.
- Language
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Englisch
- Bibliographic citation
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Series: Discussion Paper Series ; No. 32
- Classification
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Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
General Aggregative Models: General
Investment; Capital; Intangible Capital; Capacity
Economic Growth and Aggregate Productivity: General
- Subject
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Irreversible investment
Idiosyncratic uncertainty
real options
growth
- Event
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Geistige Schöpfung
- (who)
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Dihle, Hanno
- Event
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Veröffentlichung
- (who)
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University of Freiburg, Department of International Economic Policy (iep)
- (where)
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Freiburg i. Br.
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dihle, Hanno
- University of Freiburg, Department of International Economic Policy (iep)
Time of origin
- 2015
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