Hugonnier, Julien; Morellec, Erwan; Pommeret, Aude - Society for Economic Dynamics - SED - 2006
Investment is often irreversible, especially at the aggregate level. This paper proposes and solves a general equilibrium model of technology adotpion when investment in the new technlogy is irreversible. In contrast to prior research, we consider a setup where the returns on technology adoption...