A simplified exposition of smooth pasting

Economics Letters

Volumn 58, Issue 2, 1998, Pages 217-223

  Sødal, Sigbjørn ^a  

^a UNIVERSITY OF AGDER   (Norway)

Author keywords

C61; D81; D92; Irreversible investment; Optimization; Smooth pasting; Value matching

Indexed keywords

EID: 0031994687     PISSN: 01651765     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0165-1765(97)00280-2     Document Type: Article

References (5)

1. Brekke, K.A., Øksendal, B., 1991. The high contact principle as a sufficiency condition for optimal stopping. In: Lund, D., Øksendal, B. (Eds.), Stochastic Models and Option Values. North-Holland, pp. 187-208.
2. Dixit, A.K., Pindyck, R.S., 1994. Investment Under Uncertainty. Princeton University Press.
3. Dixit, A., Pindyck, R.S., Sødal, S., 1997. A markup interpretation of optimal rules for irreversible investment. NBER Working Paper 5971.
4. McDonald R., Siegel D. The value of waiting to invest. Quarterly Journal of Economics. 101:1986;707-728.
5. Samuelson P.A. Rational theory of warrant pricing. Industrial Management Review. 6:1965;13-31.