Implementation lag and the investment decision

Sudipto Sarkar and Chuanqian Zhang

Economics Letters, 2013, vol. 119, issue 2, 136-140

Abstract: The effect of implementation lag on investment trigger depends on project reversibility and growth rate. Conventional results (that longer lag and greater uncertainty raise investment trigger) are overturned if the project is sufficiently reversible and/or has a high enough growth rate.

Keywords: Investment trigger; Real option; Investment lag; Reversibility (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:119:y:2013:i:2:p:136-140

DOI: 10.1016/j.econlet.2013.02.018

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