Optimal capital investment under uncertainty

An extension

Inwon Jang, Richard Wong, Hyeon-Seung Huh

Research output: Contribution to journalArticle

Abstract

This paper develops a model for optimal capital investment in continuous time when both existing and new capital stocks are subject to uncertainty. The model is generalized to allow for large and infrequent changes in the dynamics of the capital stock, which may arise as a result of natural and man-made disasters.

Original languageEnglish
JournalEconomics Bulletin
Volume5
Issue number4
Publication statusPublished - 2008 Feb 12

Fingerprint

Investment under uncertainty
Capital stock
Capital investment
Continuous time
Man-made disasters
Uncertainty

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

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Optimal capital investment under uncertainty : An extension. / Jang, Inwon; Wong, Richard; Huh, Hyeon-Seung.

In: Economics Bulletin, Vol. 5, No. 4, 12.02.2008.

Research output: Contribution to journalArticle

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