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Technical Change, Uncertainty, and Investment

Year: 1987

Type: article

Abstract: The expected investment dynamics of the risk‐neutral firm is examined in the presence of uncertainty in the future evolution of the real wage and the stock of technical knowledge. A model of the adjustment cost firm is developed that is characterized by quasi‐fixed, factor‐augmenting technical change that is taken exogenously by the firm. The effect of wage and technical change uncertainty on investment behavior is assessed using comparative stochastic dynamic analysis.

Source: American Journal of Agricultural Economics

DOI: 10.2307/1241317

Author: Spiro E. Stefanou

Institution: Pennsylvania State University

Language: English

Topic: Capital Investment and Risk Analysis

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W1996729669

FWCI: 4.414

Cites: 13

Cited by: 24

Related to: 10