Capital productif, incertitudes et profitabilité
AbstractThe productive capacity that a firm would choose must mainly depend on its expectations concerning future demand and the profitability of production. The desired capital intensity must mainly depend on the relative cost of capital with respect to labor. In order to study conditions under which these two propositions apply, one discusses a model in which uncertainty of future prospects and irreversibility of investment play the major roles.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (1987)
Issue (Month): 5 ()
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