Real options in a Ramsey style growth model

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Discussion Paper Series ; No. 32

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Criteria for Decision-Making under Risk and Uncertainty ; General Aggregative Models: General ; Investment; Capital; Intangible Capital; Capacity ; Economic Growth and Aggregate Productivity: General
• Thema: Irreversible investment ; Idiosyncratic uncertainty ; real options ; growth

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dihle, Hanno
• Ereignis: Veröffentlichung
• (wer): University of Freiburg, Department of International Economic Policy (iep)
• (wo): Freiburg i. Br.
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/147446
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ