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Optimal Dynamic Investment Policies of a Value Maximizing Firm

  • Book
  • © 1989

Overview

Authors:
  1. Peter M. Kort

    1. Department of Economics, Tilburg University, Tilburg, The Netherlands

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Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 330)

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Table of contents (5 chapters)

  1. Front Matter

    Pages N2-VII
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  2. Introduction

    • Peter M. Kort
    Pages 1-8

  3. The Net Present Value in Dynamic Models of the Firm

    • Peter M. Kort
    Pages 9-42

  4. The Net Present Value in Dynamic Adjustment Cost Models of the Firm

    • Peter M. Kort
    Pages 43-70

  5. Dynamic Firm Behavior within an Uncertain Environment

    • Peter M. Kort
    Pages 71-92

  6. Conclusions

    • Peter M. Kort
    Pages 93-96

  7. Back Matter

    Pages 97-189
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Keywords

About this book

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.

Authors and Affiliations

  • Department of Economics, Tilburg University, Tilburg, The Netherlands

    Peter M. Kort

Bibliographic Information

  • Book Title: Optimal Dynamic Investment Policies of a Value Maximizing Firm

  • Authors: Peter M. Kort

  • Series Title: Lecture Notes in Economics and Mathematical Systems

  • DOI: https://doi.org/10.1007/978-3-642-48904-4

  • Publisher: Springer Berlin, Heidelberg

  • eBook Packages: Springer Book Archive

  • Copyright Information: Springer-Verlag Berlin Heidelberg 1989

  • Softcover ISBN: 978-3-540-51152-6Published: 10 May 1989

  • eBook ISBN: 978-3-642-48904-4Published: 06 December 2012

  • Series ISSN: 0075-8442

  • Series E-ISSN: 2196-9957

  • Edition Number: 1

  • Number of Pages: VII, 185

  • Topics: Finance, general, Linguistics, general

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