Real options and the Jorgensonian user cost of capital

• Autores: Oscar Gutiérrez González
• Localización: Investigaciones económicas, ISSN 0210-1521, Vol. 29, Nº 3, 2005, págs. 625-630
• Idioma: inglés
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• Resumen

  • Dixit and Pindyck (1994) claim that the Jorgensonian rule of investment (Jorgenson, 1963) does not hold in uncertain settings. This note shows that the validity of that claim depends crucially on the particular process chosen to describe the economic uncertainty. In fact, the Jorgensonian rule of investment holds in other real options models