Fixed Investment and Capital Flows : A Real Options Approach /

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....

Full description

Bibliographic Details
Main Author: Chan-Lau, Jorge
Other Authors: Clark, Peter
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1998.
Series:IMF Working Papers; Working Paper ; No. 1998/125
Online Access:Full text available on IMF

Similar Items