<p><p>We develop and solve analytically an investment model with fixed adjust-ment costs and complete irreversibility that reproduces observed investment dynamics at the micro-level. We impose a minimal set of restrictions on technology and uncertainty. Most of the results duplicate or generalize earlier findings that have been established either by simulations or under contrefactual assumptions.</p></p>
Authors
PhD scholar University of Wisconsin
Nicolas is a Phd Student at Paris School of Economics and a Phd Scholar at the Centre for Microdata Methods and Practice. His research interests include structural econometrics, applied macroeconomics and computational economics.
Working Paper details
- DOI
- 10.1920/wp.cem.2007.2907
- Publisher
- IFS
Suggested citation
Roys, N. (2007). Optimal investment policy with fixed adjustment costs and complete irreversibility. London: IFS. Available at: https://ifs.org.uk/publications/optimal-investment-policy-fixed-adjustment-costs-and-complete-irreversibility (accessed: 28 March 2024).
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