Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46733
Authors: 
Pierdzioch, Christian
Year of Publication: 
1998
Series/Report no.: 
Kiel Working Papers 847
Abstract: 
The paper derives a valuation formula for the real option of a firm to undertake an irreversible investment in a foreign economy based on the endogenous dynamics of a stochastic macroeconomic framework with sluggish price adjustment. The option valuation formula is implemented to analyze the impact of macroeconomic dynamics on the attraction of an economy for foreign investors.
JEL: 
F21
F41
Document Type: 
Working Paper

Files in This Item:
File
Size
467.6 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.