Showing 1 - 10 of 13
Persistent link: https://www.econbiz.de/10003949820
Persistent link: https://www.econbiz.de/10003727522
Persistent link: https://www.econbiz.de/10002152864
The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework where demand shifts stochastically between three different states, each with different rates of drift and volatility. In our setting the shifts are governed by a three-state Markov...
Persistent link: https://www.econbiz.de/10013156881
This article summarises our studies on the optimal timing of climate policy adoption by focusing on ambiguity in the climate damage cost assessments (Chen et al., 2011) and on the limited time to achieve certain climate policy targets (Chen et al., 2012). Using real options theory, both studies...
Persistent link: https://www.econbiz.de/10013087101
This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguity. Additionally, numerical simulations are provided to...
Persistent link: https://www.econbiz.de/10013092649
Persistent link: https://www.econbiz.de/10003971036
Persistent link: https://www.econbiz.de/10009670631
This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguity. Additionally, numerical simulations are provided to...
Persistent link: https://www.econbiz.de/10009230822
Persistent link: https://www.econbiz.de/10009297456