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Compostela/Spain. Real Options Effects on

Title: Compostela/Spain. Real Options Effects on
Authors: Jel-code J; Ansgar Belke; Matthias Göcke
Contributors: The Pennsylvania State University CiteSeerX Archives
Source: http://www.realoptions.org/papers2003/belke_goecke_aggregation.pdf.
Publication Year: 2001
Collection: CiteSeerX
Subject Terms: Aggregation; employment hysteresis; exchange rate uncertainty; real options
Description: In a baseline micro model a band of inaction due to hiring- and firing-costs is widened by option value effects of exchange rate uncertainty. Based on this micro foundation an aggregation approach is presented. Under uncertainty, intervals of weak response to exchange rate reversals are introduced on the macro-level. 'Spurts ' in new employment or firing may occur after an initially weak response. Since these mechanisms may apply to other "investment " cases where the aggregation of microeconomic real options effects under uncertainty are relevant, they may even be of a more general interest.
Document Type: text
File Description: application/pdf
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.145.1795; http://www.realoptions.org/papers2003/belke_goecke_aggregation.pdf
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.145.1795; http://www.realoptions.org/papers2003/belke_goecke_aggregation.pdf
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.DB3763FE
Database: BASE