Journal ArticleDOI
Optimal Growth with Irreversible Investment in a Ramsey Model
Kenneth J. Arrow,Mordecai Kurz +1 more
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This article is published in Econometrica.The article was published on 1970-03-01. It has received 112 citations till now. The article focuses on the topics: Investment (macroeconomics).read more
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Irreversibility, Uncertainty, and Cyclical Investment
TL;DR: In this article, the authors build on the theory of irreversible choice under uncertainty to explain cyclical investment fluctuations and show that when individual projects are irreversible, agents must make investment timing decisions that trade off the extra returns from early commitment against the benefits of increased information gained by waiting.
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Environmental Preservation, Uncertainty, and Irreversibility
TL;DR: In this article, the authors explore the implications of uncertainty surrounding estimates of the environmental costs of some economic activities and show that the existence of uncertainty will, in certain important cases, lead to a reduction in net benefits from an activity with environmental costs.
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Some adjustment problems
TL;DR: In this paper, it is shown that stationary expectations do not ensure the convergence of all equilibrium paths on to a steady state in a neoclassical model with heterogeneous capital goods, and a tatonnement process is outlined and discussed for an economy with constant returns to scale.
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Corruption and growth in Africa
TL;DR: In this article, the impact of corruption on economic growth in African economies is investigated and it is shown that corruption interacts with military burden, through indirect and complementary effects, to further increase its negative effect.
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The new approach to wilderness preservation through benefit-cost analysis
TL;DR: The authors developed a new approach to wilderness preservation based on a perception of declining net benefits of wilderness development and a rising net benefit of wilderness preservation over time, and added a few new steps, including reversibility, postponability, and recognition of multiple interest rates.