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Instantaneous optimal investment decisions with costly and costless reversibility

Author

Listed:
  • Oner Guncavdi
  • Seyidali S. Akhiev

    () (Istanbul Technical University)

  • Andrew McKay

    (University of Nottingham)

Abstract

En general, las diferentes teorias que se han planteado para explicar la inversion se basan en problemas de optimizacion dinamica cuyas soluciones cuentan con diferentes metodos. En dichos modelos, los valores optimos de las variables de control y de estado, etiquetadas como inversion y capital respectivamente, dependen de los precios futuros del producto y de los factores de la produccion y del nivel de capital al final del periodo. En este articulo sugerimos un nuevo metodo para obtener los niveles optimos de inversion sin requerir informacion sobre los precios futuros o las condiciones de transversalidad. Asi, en lugar de maximizar el valor presente de los flujos de caja por unidad de capital, como un indice de desempeno, la empresa maximiza el valor actual del flujo de caja por unidad de capital.

Suggested Citation

  • Oner Guncavdi & Seyidali S. Akhiev & Andrew McKay, 2007. "Instantaneous optimal investment decisions with costly and costless reversibility," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 3(2), pages 71-88, Enero-Jun.
  • Handle: RePEc:qua:journl:v:3:y:2007:i:2:p:71-88
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    References listed on IDEAS

    as
    1. Léonard,Daniel & Long,Ngo van, 1992. "Optimal Control Theory and Static Optimization in Economics," Cambridge Books, Cambridge University Press, number 9780521331586.
    2. Robert E. Lucas & Jr., 1967. "Adjustment Costs and the Theory of Supply," Journal of Political Economy, University of Chicago Press, vol. 75, pages 321-321.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Economics; investment; analysis.;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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