Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46733 
Year of Publication: 
1998
Citation: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1998
Series/Report no.: 
Kiel Working Paper No. 847
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
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
Document Version: 
Digitized Version

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