It shows that the faster technological substitution or innovation encourages the leader to invest earlier while induces the follower to invest later.
In this paper, we assume that the surplus of an insurer follows a Lévy risk process and the insurer would invest its surplus in a risky asset, whose prices are modeled by a geometric Brownian motion.
Comparing with the optimal timing without the expectation of a further new technology, the firm hastens to invest when no firm has invested; however, once one firm has invested first, the firm will delay its investment.
Conscription comples 70% of male Norwegians to invest 1 year of their lives in military training.
Some welfare states are high on transfers, others on services, and among services - some give priority to institutions, others invest more heavily in community (home) care.
By numerical analysis, the fertility decreases with the per capita capital and per capita consumption increasing and increases with the per capita capital and per capita consumption decreasing on the economic growth path are obtained.
Effects of exchange rate and tariffs on an open economy of scarcity of capital
In this paper, the impact of tariffs and exchange rate on consumption and investment in an open economy of scarcity of capital is analysed.
The dynamics and market price of capital, and the solution of foreign asset holding of the firm are discussed.
Necessary and sufficient condition for the existence of a nonnegative equilibrium price vector in the capital market with short-