limits of the equilibrium outcomes for a finite horizon exist. The addition of learning to a stochastic environment is shown …

limits of the equilibrium outcomes for a finite horizon exist. The addition of learning to a stochastic environment is shown …

This paper investigates the effects of uncertainty emanating from technological improvements on the optimal lifetime of … technological change. From the analysis it turns out that in general this type of uncertainty shortens the optimal lifetime of … assets. More specifically, the analysis shows that: replacement under uncertainty leads to optimal lifetimes of assets that …

Most risk mitigation activities involve technological uncertainty (TU) because their effectiveness depends on exogenous …

We consider a firm under strict liability that must choose between two risky technologies, one being safer but costlier … liability, technological change is welfare improving and leads to full risk internalization when the firms are sufficiently … unlimited liability than under limited liability. We show how an adequate tax policy increases this percentage. We also …

's production technology which, however, may not reflect optimality conditions that banks seek to satisfy under uncertainty. The ex … estimate banks' production technology based on the ex-ante cost function. We model credit uncertainty explicitly by recognizing …

This paper considers technology adoption under both technological and subsidy uncertainties. Uncertainty in subsidies … a drift. The analytical solution is presented for cases when there is no subsidy uncertainty and when the subsidy …