In this paper, we derive general results concerning optimal relocation policy under some assumptions. We consider a firm that is located in a specific location, producing at a certain level of efficiency. With time, the firm can decide to change its location to a new and more efficient site,...

The present work focuses on one of the principal themes associated to the New Basel Accord – operational risk and its respective methodologies for calculating minimum capital requirements. The new capital accord encourages financial institutions to gradually evolve from basic to sophisticated...

Purpose – This paper aims to focus on the problem of the optimal relocation policy for a firm that faces two types of uncertainty: one about the moments in which new (and more efficient) sites will become available; and the other regarding the degree of efficiency improvement inherent to each...