This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

An irreversible investment model with a stochastic production capacity and fixed plus proportional adjustment costs

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Yiannis Kamarianakis () (Regional Analysis Division, Institute of Applied and Computational Mathematics, Foundation for Research and Technology-Hellas, Greece)
Anastasios Xepapadeas () (Department of Economics, University of Crete, Greece)

Additional information is available for the following registered author(s):

Abstract

This paper studies the problem of a company which expands its stochastic production capacity in irreversible investments by purchasing capital and faces both fixed and proportional costs. The objective of the company is to find optimal production decisions to maximize its expected total net profit in an infinite horizon. We solve this problem explicitly by applying the theory of stochastic impulse controls.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.soc.uoc.gr/econ/wpa/docs/KAMXEP3rd3.pdf
File Format: application/pdf
File Function: First version
Download Restriction: no

Publisher Info
Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0708.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 20 pages
Date of creation: 15 Oct 2006
Date of revision:
Handle: RePEc:crt:wpaper:0708

Contact details of provider:
Postal: Gallos - Rethymno 74100
Phone: +30 831 77405
Fax: +30 831 77406
Web page: http://www.soc.uoc.gr/econ/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Kostis Pigounakis).

Related research
Keywords: Irreversible investment production quasi-variational inequalities stochastic impulse control

Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
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, Investment, or Financing

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Andrew B. Abel & Janice C. Eberly, 1995. "Optimal Investment with Costly Reversibility," NBER Working Papers 5091, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Cadenillas, Abel & Zapatero, Fernando, 1999. "Optimal Central Bank Intervention in the Foreign Exchange Market," Journal of Economic Theory, Elsevier, vol. 87(1), pages 218-242, July. [Downloadable!] (restricted)
  3. Anders ûksendal, 2000. "Irreversible investment problems," Finance and Stochastics, Springer, vol. 4(2), pages 223-250. [Downloadable!] (restricted)
  4. Dixit, Avinash, 1991. "A simplified treatment of the theory of optimal regulation of Brownian motion," Journal of Economic Dynamics and Control, Elsevier, vol. 15(4), pages 657-673, October. [Downloadable!] (restricted)
Full references

Statistics
Access and download statistics

Did you know? You can include your works in the database easily by uploading them on the Munich Personal RePEc Archive (MPRA) if you do not have access to an institutional RePEc archive.

This page was last updated on 2008-7-4.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.