The Delaying Effect of Financing Constraints on Investment
AbstractWe develop a simple model in which a firm considers a number of investment projects. Because of limited financial resources, the firm can undertake at most one project. In line with the literature on real options we stress features like irreversibility, uncertainty and the possibility of postponing the investment decision and show under which conditions limited availability of funds tends to increase the value of waiting. Copyright Blackwell Publishers Ltd and the Board of Trustees of the Bulletin of Economic Research, 2004.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Bulletin of Economic Research.
Volume (Year): 56 (2004)
Issue (Month): 3 (07)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0307-3378
Other versions of this item:
- Letterie,Wilko & Laar,Mindel,van de, 2003. "The delaying effect of financing constraints on investment," Research Memoranda 004, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Laar, Mindel van de & Letterie, Wilko, 2004. "The delaying effect of financing constraints on investment," Open Access publications from Maastricht University urn:nbn:nl:ui:27-20493, Maastricht University.
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity
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