Howe, Keith M.; Lapan, Harvey - In: Journal of Financial and Quantitative Analysis 22 (1987) 02, pp. 249-258
Our paper extends prior work on abandonment and replacement policies by analyzing the effects of both the Darby and the Fisher interest rate hypotheses. In most of the new cases developed, the effect of increased inflation on economic life is ambiguous. In the abandonment problem, we find a...