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Modeling Asset Interconnectedness on Investment Models

Author

Listed:
  • Gema Pastor-Agustín
  • Marisa Ramírez-Alesón
  • Manuel Espitia-Escuer

Abstract

This paper assesses an investment model for firms making decisions on interconnected assets. Introducing heterogeneity and interconnections implies new considerations about investment decision drivers. The paper also analyzes the optimum conditions under this new framework. In fact, it is observed that considering a continuous or a discrete time model implies different assumptions. The paper thus provides an investment model of a recognized but not yet formalized reality. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Gema Pastor-Agustín & Marisa Ramírez-Alesón & Manuel Espitia-Escuer, 2010. "Modeling Asset Interconnectedness on Investment Models," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(2), pages 203-212, May.
    • Handle: RePEc:kap:iaecre:v:16:y:2010:i:2:p:203-212:10.1007/s11294-010-9254-3
    DOI: 10.1007/s11294-010-9254-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Investment models; Interconnectedness; Continuous time; Discrete time; C62; D92; G31; M21;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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