Technical Change, Uncertainty, and Investment

Spiro Stefanou

American Journal of Agricultural Economics, 1987, vol. 69, issue 1, 158-165

Abstract: The expected investment dynamics of the risk-neutral firm is examined in the presence of uncertainty in the future evolution of the real wage and the stock of technical knowledge. A model of the adjustment cost firm is developed that is characterized by quasi-fixed, factor-augmenting technical change that is taken exogenously by the firm. The effect of wage and technical change uncertainty on investment behavior is assessed using comparative stochastic dynamic analysis.

Date: 1987
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Working Paper: TECHNICAL CHANGE, UNCERTAINTY AND INVESTMENT (1986)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:69:y:1987:i:1:p:158-165.

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