Fixed Investment and Capital Flows: A Real Options Approach
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Bibliographische Detailangaben
Beteilige Person: Chan-Lau, Jorge A. (VerfasserIn)
Format: Elektronisch E-Book
Sprache:Englisch
Veröffentlicht: Washington, D.C International Monetary Fund 1998
Schriftenreihe:IMF Working Papers Working Paper No. 98/125
Links:http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
http://elibrary.imf.org/view/IMF001/02555-9781451937398/02555-9781451937398/02555-9781451937398.xml
Abstract:This paper draws a link between international capital flows and the real options approach to investment by extending a model of real estate investment. It explains gradual investment, investment booms, and investment during recessions and emphasizes sunk costs, uncertainty, and the value of waiting. The optimal waiting time increases as foreign borrowing becomes more expensive because higher returns are required to cover the sunk costs of investing. The lower the initial level of profitability, the more likely investment will be sequential; conversely, a relatively high initial rate of return will be associated with simultaneous investment
Umfang:1 Online-Ressource (28 p)
ISBN:1451937393
9781451937398