Liquidity Preference Under Uncertainty: A Model of Dynamic Investment in Illiquid Assets, November 1978 (Classic Reprint) - Softcover
Synopsis
Explore how investors decide on long-term, illiquid investments when the future is uncertain.
This study outlines a dynamic, mathematical model of choosing irreversible investments under risk. It treats liquidity as a real trade-off between potential returns and the costs of locking capital away. The framework compares a liquid, short‑term alternative to a long‑lasting, illiquid opportunity and shows how an investor’s optimum depends on horizon length, lifetimes of assets, and the distribution of机会.
- See how the concept of a liquidity premium arises and when it should be demanded.
- Learn how the remaining time to the horizon shapes optimal hurdle rates over time.
- Understand how the duration of investments and arrival patterns of opportunities affect decisions.
- Recognize the differences between the model’s theoretical hurdle rates and actual market rate structures.
Ideal for readers interested in how rational investors allocate capital to irreversible projects under uncertainty, using a formal, continuous-time decision framework.
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Liquidity Preference Under Uncertainty (Classic Reprint)
Print on DemandSeller: Forgotten Books, London, United Kingdom
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Paperback. Condition: New. Print on Demand. This book delves into the intricate relationship between liquidity and investment decisions, focusing on the dynamics of investing in illiquid assets under uncertainty. The author develops a mathematical model that explores how investors weigh liquidity risks against potential returns, demonstrating that rational investors demand higher rates of return for long-term, unmarketable investments. This liquidity premium increases with the duration of the investment, highlighting the significance of considering the time value of money in investment decisions. The book provides valuable insights into the behavior of investors in uncertain markets and contributes to the understanding of how liquidity affects investment strategies. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item. Seller Inventory # 9781332268160_0
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Liquidity Preference Under Uncertainty A Model of Dynamic Investment in Illiquid Assets, November 1978 Classic Reprint
Seller: PBShop.store US, Wood Dale, IL, U.S.A.
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PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LW-9781332268160
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Liquidity Preference Under Uncertainty A Model of Dynamic Investment in Illiquid Assets, November 1978 Classic Reprint
Seller: PBShop.store UK, Fairford, GLOS, United Kingdom
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PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LW-9781332268160
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