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We study optimal investment in technologies characterized by the learning curve. There are two investment patterns depending on the shape of the learning curve. If the learning process is slow, firms invest relatively late and on a larger scale. If the curve is steep, firms invest earlier and on...
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A dynamic model featuring a stochastic technology frontier shows significant impact of technology adoption for asset … prices. In equilibrium, firms operating with old capital are riskier because costly technology adoption restricts their … flexibilities in upgrading to the latest technology, making them more exposed to technology frontier shocks. Consistent with the …
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-form solutions for the volume and the structure of trade. Empirical results support the implications of the theory. Trade in …
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Fragmented risk is a theme that runs throughout many of the issues and controversies in insurance law, but one that has received insufficient attention. Insurance reflects a tension between bundling and fragmenting risk. One of the great virtues of many modern insurance policies is that they...
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