Real investment decisions under adjustment costs and asymmetric information

Journal of Economic Dynamics and Control

Volumn 23, Issue 1, 1998, Pages 71-95

  Gaudet, Gérard ^a   Lasserre, Pierre ^b   Van Long, Ngo ^c  

^a UNIVERSITÉ DE MONTRÉAL   (Canada)

^b UNIVERSITÉ DU QUÉBEC À MONTRÉAL   (Canada)

^c MCGILL UNIVERSITY   (Canada)

Author keywords

Asymmetry of information; Cost of adjustment model; Uncertainty

Indexed keywords

EID: 0003225884     PISSN: 01651889     EISSN: None     Source Type: Journal    
DOI: 10.1016/s0165-1889(97)00107-3     Document Type: Article

References (17)

1. Abel A.B. Optimal investment under uncertainty. American Economic Review. 73(1):1983;228-233.
2. Abel A.B., Blanchard O.J. The present value of profits and cyclical movements in investment. Econometrica. 54(2):1986;249-273.
3. Abel A.B., Eberly J.C. A unified model of investment under uncertainty. American Economic Review. 84(5):1994;1369-1384.
4. Bernanke B., Gertler M. Agency costs, new worth and business fluctuations. American Economic Review. 79:1989;14-31.
5. Caballero R. On the sign of the investment-uncertainty relationship. American Economic Review. 81(1):1991;279-288.
6. Chirinko R.S. Business fixed investment spending: Modeling strategies, empirical results, and policy implications. Journal of Economic Literature. 31(December):1993;1875-1911.
7. Cooper, R., 1994. Financial intermediation and aggregate fluctuations: a quantitative analysis. Mimeo, Department of Economics, Boston University, Boston.
8. Demers, F., Demers, M., Shaller, H., 1994. Irreversible Investment and Costs of Adjustment, No 9416. CEPREMAP, Paris.
9. Dixit A., Pindyck R.S. Investment Under Uncertainty. 1994;Princeton University Press, Princeton.
10. Diamond D. Reputation acquisition in the debt market. Journal of Political Economy. 97:1989;828-862.
11. Guesnérie R., Laffont J.-J. A complete solution to a class of principal-agent problems with an application to the control of a self-managed firm. Journal of Public Economics. 25(December):1984;329-369.
12. Harris M., Raviv A. The theory of capital structure. Journal of Finance. 46(1):1991;297-355.
13. Hayashi F. Tobin's marginal q and average q. a neoclassical interpretation Econometrica. 50(1):1982;213-224.
14. Laffont J.-J., Tirole J. The dynamics of incentive contracts. Econometrica. 56:1988;1153-1175.
15. Lang L.H.P., Stulz R.M. Tobin's q, corporate diversification, and firm performance. Journal of Political Economy. 102(6):1994;1248-1280.
16. Lewis T.R., Sappington D.E. Inflexible rules in incentive problems. American Economic Review. 79(1):1989;69-84.
17. Myers S.C., Majluf N.S. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics. 13:1984;187-221.