Optimal Dynamic Investment Policies of a Value Maximizing Firm

Peter M. Kort

ISBN 10: 3540511520 / ISBN 13: 9783540511526

Published by Springer, J.B. Metzler Mai 1989, 1989

About this Item

This item is printed on demand - Print on Demand Titel. Neuware -1.1. Scope of the Book This book is a contribution to the area of 'dynamic models of the firm'. The motivation for this kind of research is the following: Empirical studies (e.g. Albach (1976)) have shown that the development of the firm over time can be divided into different stages. such as growth. stationarity and contraction. In order to understand and evaluate these stages in a proper way. it is important to develop a suitable theoretical framework. To that end. economists have applied dynamic mathematical techniques. such as optimal control theory. calculus of variations and dynamic programming to design and analyse dynamic models of the firm. In this way. the economic theory of the firm is extended to a dynamic context. Within the field of the dynamics of the firm this book - develops a general investment decision rule. based on the concept 'net present value of marginal investment'. which is applicable in deterministic dynamic models of the firm; - studies the influence of adjustment costs of investment on optimal dynamic firm behavior; - extends the stochastic dynamic theory of the firm by connecting it with a dynamic version of the Capital Asset Pricing Model. Before elaborating on 'the dynamics of the firm'. we first review the subject of net present value in the classical analysis.Springer-Verlag KG, Sachsenplatz 4-6, 1201 Wien 200 pp. Englisch.

Seller Inventory # 9783540511526

Bibliographic Details

• Title: Optimal Dynamic Investment Policies of a Value Maximizing Firm
• Publisher: Springer, J.B. Metzler Mai 1989
• Publication Date: 1989
• Language: English
• ISBN 10: 3540511520
• ISBN 13: 9783540511526
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 244W x 170H x 12D millimeters 244 millimeters width by 170 millimeters height by 12 millimeters depth
• Weight: 355 grams

About this title

Synopsis

1.1. Scope of the Book This book is a contribution to the area of "dynamic models of the firm". The motivation for this kind of research is the following: Empirical studies (e.g. Albach (1976)) have shown that the development of the firm over time can be divided into different stages. such as growth. stationarity and contraction. In order to understand and evaluate these stages in a proper way. it is important to develop a suitable theoretical framework. To that end. economists have applied dynamic mathematical techniques. such as optimal control theory. calculus of variations and dynamic programming to design and analyse dynamic models of the firm. In this way. the economic theory of the firm is extended to a dynamic context. Within the field of the dynamics of the firm this book - develops a general investment decision rule. based on the concept "net present value of marginal investment". which is applicable in deterministic dynamic models of the firm; - studies the influence of adjustment costs of investment on optimal dynamic firm behavior; - extends the stochastic dynamic theory of the firm by connecting it with a dynamic version of the Capital Asset Pricing Model. Before elaborating on "the dynamics of the firm". we first review the subject of net present value in the classical analysis.