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This paper studies managerial decisions about investment in long-run projects in the presence of imperfect information … imperfection present and the direction of the distortion. When investors cannot observe the level of investment in long …-run projects, suboptimal investment will be induced. When investors can observe investment but not its productivity, however, an …
Persistent link: https://www.econbiz.de/10012474201
It has recently been observed that when equations of motion for state variables are nonautonomous, optimal control problems involving Uzawa's endogenous rate of time preference cannot be solved using the change-of-variables method common in the literature. Instead, the problem must be solved by...
Persistent link: https://www.econbiz.de/10012476565